US buyers get lowest price for Apple's iPad 2, Demark most expensive
Apple's pricing and international exchange rates make the least expensive place to buy the iPad 2 the U.S., while Denmark -- where the tablet went on sale Friday -- is most expensive.
Using Apple's prices and current exchange rates, Reuters calculated the breakdown of who's paying what for the second-generation iPad. While the 16GB entry-level iPad 2 costs $499 in the U.S., that translates to $702 in American dollars in Denmark.
Throughout Europe, the iPad 2 costs 479 euros, or $678 U.S. in most countries. It's slightly more expensive in France, where it costs at 489 euros, while residents of Luxembourg get a discount with 455 euros.
Britons who get their hands on the iPad 2 today will pay less than the rest of Europe as well. The entry-level 16GB Wi-Fi-only model costs 399 pounds in the U.K., or $642 U.S.
The report noted that in the U.S., sales tax varies by state, with some pay as little as zero, while the highest is 13.725 percent. In America, the $499 iPad with tax has a maximum price of $567 and an average price of $547.
International lines for the iPad 2 began to form this week in anticipation of the Friday launch. As with the U.S. launch, brick-and-mortar stores were the only place to get an iPad 2 on day one.
iPad 2 launch day line at Apple's Covent Garden U.K. store. Photo courtesy AppleInsider reader Mike.
Apple began taking online orders from international buyers on Thursday, but those aren't scheduled to ship for at least a few weeks. American shoppers who buy online from Apple's store must also wait up to a month before their order is estimated to ship.
The iPad 2 is now available for sale in 25 new countries: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the U.K. Originally scheduled to be a part of Friday's launch was Japan, but that was pushed back indefinitely following the earthquake and tsunami disaster.
The iPad 2 will also be available in Hong Kong, Korea, Singapore and additional countries in April, and in many more countries around the world in the coming months. Further international availability and pricing will be announced by Apple at a later date.
Using Apple's prices and current exchange rates, Reuters calculated the breakdown of who's paying what for the second-generation iPad. While the 16GB entry-level iPad 2 costs $499 in the U.S., that translates to $702 in American dollars in Denmark.
Throughout Europe, the iPad 2 costs 479 euros, or $678 U.S. in most countries. It's slightly more expensive in France, where it costs at 489 euros, while residents of Luxembourg get a discount with 455 euros.
Britons who get their hands on the iPad 2 today will pay less than the rest of Europe as well. The entry-level 16GB Wi-Fi-only model costs 399 pounds in the U.K., or $642 U.S.
The report noted that in the U.S., sales tax varies by state, with some pay as little as zero, while the highest is 13.725 percent. In America, the $499 iPad with tax has a maximum price of $567 and an average price of $547.
International lines for the iPad 2 began to form this week in anticipation of the Friday launch. As with the U.S. launch, brick-and-mortar stores were the only place to get an iPad 2 on day one.
iPad 2 launch day line at Apple's Covent Garden U.K. store. Photo courtesy AppleInsider reader Mike.
Apple began taking online orders from international buyers on Thursday, but those aren't scheduled to ship for at least a few weeks. American shoppers who buy online from Apple's store must also wait up to a month before their order is estimated to ship.
The iPad 2 is now available for sale in 25 new countries: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the U.K. Originally scheduled to be a part of Friday's launch was Japan, but that was pushed back indefinitely following the earthquake and tsunami disaster.
The iPad 2 will also be available in Hong Kong, Korea, Singapore and additional countries in April, and in many more countries around the world in the coming months. Further international availability and pricing will be announced by Apple at a later date.
Comments
Apple's pricing and international exchange rates make the least expensive place to buy the iPad 2 the U.S., while Demark -- where the tablet went on sale Friday -- is most expensive....
No offence but this article tells us almost nothing. How can anyone make even a mental comparison when the prices quoted include or don't include various sales taxes.
The proper comparison is the pre-tax price expressed in whatever currency you want to pick.
It means nothing to write an article arguing that the iPad is "more expensive" in country A than country B if you aren't taking the tax issue off the table first. What's important, especially in terms of Apple's policies as a company (presumably what this blog is at least partially dedicated to), is that Apple is artificially jacking up the price of the iPad in *some* countries irrespective of the taxes and duties and exchange rates.
That's the real story.
Nice to see the UK price drop to £399 for the basic model.
No offence but this article tells us almost nothing. How can anyone make even a mental comparison when the prices quoted include or don't include various sales taxes.
The proper comparison is the pre-tax price expressed in whatever currency you want to pick.
It means nothing to write an article arguing that the iPad is "more expensive" in country A than country B if you aren't taking the tax issue off the table first. What's important, especially in terms of Apple's policies as a company (presumably what this blog is at least partially dedicated to), is that Apple is artificially jacking up the price of the iPad in *some* countries irrespective of the taxes and duties and exchange rates.
That's the real story.
Why would taking out tax make it a good comparison? Aren't TAX coming out of your pocket regardless who charges it and how much you pay? A comparison on total out of pocket cost is more relevant than pre-tax price.
In America, the $499 iPad with tax has a maximum price of $567 and an average price of $547.
If you purchase the least expensive model in Alberta, Canada, the price with tax would be C$544.95 (C$519 + 5%GST).
If you purchase the least expensive model in Alberta, Canada, the price with tax would be C$544.95 (C$519 + 5%GST).
What's up with the $519 before-tax price in Canada, though? Shipping? $20 a unit is a big premium when hundreds are shipped at a time.
Why would taking out tax make it a good comparison? Aren't TAX coming out of your pocket regardless who charges it and how much you pay? A comparison on total out of pocket cost is more relevant than pre-tax price.
It depends on if you are talking about how much people are paying vs how much Apple is making. But to your point, the article seems to be talking about how much people are paying. Then I'd question why they led off with the US pre-tax prices, and buried the post-tax US prices in paragraph 5th, well after the reader has formed an opinion of the price comparison. Even then, pointing out how much of the cost to the buyer is tax, but not including the similar info for the Denmark price leaves much to speculation. How much of that $702 (US) a person in Denmark pays is tax?
Taking it a step further, any comparison of post-tax costs is misleading. What if Denmark has high VAT but other taxes are low? So other countries get their iPads cheaper but maybe make up for it in higher taxes elsewhere. Maybe the Demark VAT is helping to pay for healthcare or retirement, so they get more than an iPad out of their purchase. There is really no "fair" way to compare post-tax prices for anything other than very vague comparisons.
I'd like to see tabular data that compares both pre and post tax prices across the board. Pick a few representative jurisditions in the US since the rates vary so widely.
Oh, and I'd also like to know where the highest US sales tax of 13.725% comes from? I'm pretty sure LA and Chicago are tied for the highest rate at 10.75%.
Edit: I did find a reference to where the 13.725% comes from, but it includes a 6% tax charged if you are on a particular Indian reservation, which affects a very small number of people. Looking at only state, county, and city taxes, it appears LA and Chicago are tied.
Why would taking out tax make it a good comparison? Aren't TAX coming out of your pocket regardless who charges it and how much you pay? A comparison on total out of pocket cost is more relevant than pre-tax price.
He explained why... go back and re-read.
Because the more interesting story with respect to Apple pricing policy is how much Apple/Distributors are charging for the iPad2, not how much people are paying.
For example, if Apple/Distributors are charging the same amount to ALL countries, you could still get a huge difference in end-user expense solely due to taxes. If you compare these prices you are merely comparing the tax difference between countries. And while that might be interesting, it has NOTHING to do with Apple products.
Get it?
They've certainly stopped any competition dead in it's tracks. Aggressive pricing and all that. Is this the Apple we all know and love? Loving it.
Why Dont you ever give an idea of what tax people in the USA pay. I know it's generally different in each state but it gives the impression that a US citizen pays much less and everyone else gets ripped off.
Nice to see the UK price drop to £399 for the basic model.
Some people don't pay sales tax, depending on how they buy their iPad. i.e. Military on base. In this case, you default to the lowest price of an iPad unit. In the UK, no one can avoid the VAT. So the comparisons here are valid and useful.
UK is still paying $640 for a base model iPad 2 with VAT added! I'd call that a ripoff, even if you added the 9% sales tax some counties in New York charge, for comparison.
Why Dont you ever give an idea of what tax people in the USA pay. I know it's generally different in each state but it gives the impression that a US citizen pays much less and everyone else gets ripped off.
No national sales tax. Each state, and each county, has its own rate. They range from 0% in New Hampshire, Oregon, Delaware, and parts of Alaska and Montana to 11.5% in certain counties in Illinois. The average seems to be around 7%. I pay 8.75% where I live, in Buffalo, NY.
Sources: Self, http://en.wikipedia.org/wiki/Sales_t...#Summary_table
What's up with the $519 before-tax price in Canada, though? Shipping? $20 a unit is a big premium when hundreds are shipped at a time.
I'm guessing it's historical and due to duties. Anything not made in the US gets slapped with a duty whilst crossing the border.
Buying electronics from the states off eBay generally set you back a good 7% of the price once it arrives at your door.
Some people don't pay sales tax, depending on how they buy their iPad. i.e. Military on base. In this case, you default to the lowest price of an iPad unit. In the UK, no one can avoid the VAT. So the comparisons here are valid and useful.
UK is still paying $640 for a base model iPad 2 with VAT added! I'd call that a ripoff, even if you added the 9% sales tax some counties in New York charge, for comparison.
True, but based on what a previous poster said, if a business in the UK can reclaim the VAT, and using your "default to the lowest price" method, the prices of the iPad is $532 vs $499 in the US. So not really that much of a difference.
Sure, many people in the UK can't get it for that price. But many people in the US can't get it tax-free, either.
I'm guessing it's historical and due to duties. Anything not made in the US gets slapped with a duty whilst crossing the border.
Buying electronics from the states off eBay generally set you back a good 7% of the price once it arrives at your door.
No, it's got a lot more to do with currency valuations. The US dollar it relatively weak, and has been for some time. This makes it look like the prices are higher abroad, but it's not really so, since people in other countries neither earn nor spend US dollars. If they want to get the benefit of their relatively strong currencies, they need to change their currencies into dollars and come to the US.
VAT (Value Added Tax) in the UK can be reclaimed for business's, so the £399 price only applies to consumers. The actuall price is £332.50 which converts to $532 before tax in the US - a much better comparison that still shows the US buyer is getting it cheaper.
However that's a pretty good deal for Apple goods in the UK - $33 more, not even 10%!
In addition we do have more consumer rights in the UK than in the US, that, and possibly other duties or running costs will mean a slightly higher price to pay for most goods, pre-tax.