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US buyers get lowest price for Apple's iPad 2, Demark most expensive

post #1 of 68
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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.
post #2 of 68
Where in the world is Demark?
post #3 of 68
Quote:
Originally Posted by AppleInsider View Post

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.
post #4 of 68
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.
post #5 of 68
Quote:
Originally Posted by Prof. Peabody View Post

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.
post #6 of 68
In Mexico there was about a $50 USD price drop, i think the price is very similar to that of the US, considering we have a 16% VAT
post #7 of 68
Quote:
Originally Posted by AppleInsider View Post

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).
post #8 of 68
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.
post #9 of 68
Quote:
Originally Posted by dualie View Post

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.
post #10 of 68
Quote:
Originally Posted by xsu View Post

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.
post #11 of 68
Quote:
Originally Posted by xsu View Post

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?
post #12 of 68
I ordered online in the UK. It was saying "2-3 weeks" as soon as ordering opened. My predicted delivery date is 26th April. Hopefully they're just being conservative with their estimates and I'll get it before then.
post #13 of 68
Actually i was pleasantly surprised to see iPad2 starting at £399. Still can't justify buying one though as my current iPad is fine and dandy.

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.
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A reputation is not built upon the restful domain of one's comfort zone; it is made out of stalwart exposition of your core beliefs, for all challenges to disprove them as irrelevant hubris.- Berp...
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post #14 of 68
Quote:
Originally Posted by antic4 View Post

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.
post #15 of 68
Quote:
Originally Posted by antic4 View Post

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
post #16 of 68
Quote:
Originally Posted by coolfactor View Post

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.
post #17 of 68
Quote:
Originally Posted by Mac.World View Post

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.
post #18 of 68
I hope we in American are less critical and more appreciative of Apple.
post #19 of 68
Quote:
Originally Posted by alienzed View Post

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.
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post #20 of 68
Quote:
Originally Posted by growbotham View Post

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.
post #21 of 68
I know nobody cares but I'd like to correct the title anyhow: it's in GREECE that we pay the highest price for an iPad: US$716.315 (aka €509). We also know why Reuters tries to feed you misinformation: our PM -- in a moment of total mental bewilderment -- once declared that Greece wants to be the Denmark of the Mediterranean, and the (great) Danes have been after us ever since. This is just one more of their ploys.
post #22 of 68
Don't worry guys. As soon as Brazil start selling the iPad 2 there, they will overtake Demark status.

Brazil: the most expensive place to buy any Apple product in the world.
post #23 of 68
Quote:
Originally Posted by oriste View Post

I know nobody cares but I'd like to correct the title anyhow: it's in GREECE that we pay the highest price for an iPad: US$716.315 (aka 509). We also know why Reuters tries to feed you misinformation: our PM -- in a moment of total mental bewilderment -- once declared that Greece wants to be the Denmark of the Mediterranean, and the (great) Danes have been after us ever since. This is just one more of their ploys.

Do you spend euros in Greece, or US dollars?
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post #24 of 68
We're quite lucky in Switzerland as we don't get the crazy prices people have in Europe... The iPad 2 starts at "only" 549CHF which is around 595-600$US.
post #25 of 68
Paid 591 (19.6% VAT incl.) for the 32 wifi only, but got a Champagne bottle as a gift from the store for being the very first in line.
Only in France
post #26 of 68
Quote:
Originally Posted by Dr Millmoss View Post

Do you spend euros in Greece, or US dollars?

The price is 509 for the entry model, 16GB, wifi only, converted to US$716.315 at today's rate.
post #27 of 68
Steve Jobs has stated that Apple products sell for about the same price in all countries. In America, prices are quoted without sales tax. These European prices are quoted including the VAT. You would have to know the VAT (it varies from approx. 15%-25%) in each country in order to compare the "pre-tax" price on iPads around the world.
post #28 of 68
Do we have to go through this every single time a new device comes out?

Things have different prices in different countries. Get used to it. This has nothing to do with Apple or even computers - it's just the way things are. Why does this need to make headlines over and over again?

I propose the next breaking news headline:
AC plugs on UK Macs are larger than those in the US - are US customers getting less for their money?
post #29 of 68
Happy to accomodate you: the entry level model's price pre-tax in Greece is €413.82. That converts to US$582.33 vs. US$499 in the US. About the same indeed ;-)
post #30 of 68
Quote:
Originally Posted by oriste View Post

The price is 509 for the entry model, 16GB, wifi only, converted to US$716.315 at today's rate.

Right, so you spend euros, not dollars. As I thought. The conversion to dollars is meaningless since you don't earn or spend dollars in Greece.
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post #31 of 68
The price for Denmark includes 25% sales tax. So the right number to compare to the american 499$ is then 562$
Anyway, the end user must put down the full 702$ so a shopping trip to New York would be nice.

Just because there are rules, it doesn't mean the game is fair.

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post #32 of 68
Quote:
Originally Posted by Prof. Peabody View Post

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.

The price of a top iPad in the US in USD is $829.- (I presume the price listed is without tax as it varies in different states). The price sans tax in Denmark is 853 USD. Tax in Denmark is 25% (nothing to do with Apple).
post #33 of 68
Quote:
Originally Posted by xsu View Post

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.

Because taxes and duties vary wildly even within the USA as the article notes, and because the article actually mixes up pre-tax prices and post tax prices and only mentions some countries but doesn't mention others.

Basically I'm saying the information is a mixed up hodge-podge that isn't presented sensibly and doesn't really allow one to form any rational conclusion.

I'm also saying that the "real story" (the more interesting aspect of the situation), is why Apple is selling the product at different prices in different markets, which they traditionally avoided doing before (or previous to the last five years or so anyway). If a product is priced higher (after-tax) in a country simply because that country has a different tax structure it's hardly news at all, whereas if Apple is purposely charging more for the base product in country A versus country B (and they seem to be doing just that), to me, that's a bigger and more important story.

For instance the Canadian dollar is worth more than the American dollar, but the pre-tax price in Canada for iPad 2 is higher by 20 dollars, instead of lower by the fractional difference in the currencies. I was fairly certain the I remembered iPad 1.0 as being the same price but simply converted into Canadian dollars. One can't really argue that there are higher costs associated with doing business in Canada either, as those presumed costs were already present and didn't affect the price previously.

On a related note, why are there no educational discounts on the iPad? Most Apple products when bought for Education or through the Apple Education store, are cheaper by about five to ten percent but iPad 2 seems to be the same.

I think the answer for both is super thin margins and high component costs, but it's interesting to me that Apple has seemingly changed it's policies around these issues. Probably this is just because it affects me personally, but I think it's a more interesting story none the less.
post #34 of 68
Neither higher costs, duties, or taxes, account for the "difference" in price. Variations in exchange rates account for most of the difference, which isn't really a difference at all. I'm constantly surprised by how poorly this concept is understood.
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post #35 of 68
Quote:
Originally Posted by Dalle View Post

The price for Denmark includes 25% sales tax. So the right number to compare to the american 499$ is then 562$
Anyway, the end user must put down the full 702$ so a shopping trip to New York would be nice.

Hm, now many would you have to purchase to make up for the price of the airline ticket...and then sneak them all past Denmark customs officials!

Conversely, a Chicago tourist in Denmark could purchase one there and then claim a refund of the VAT since they are not using the product in Denmark (I presume Denmark VAT works similar to other countries). A single, low-end iPad would be below the declarations limit, so no duties. But even if it were over the limit, it would still be less than the Chicago sales tax. All-in-all, it would end up being roughly the same price.
post #36 of 68
Quote:
Originally Posted by Dalle View Post

The price for Denmark includes 25% sales tax. So the right number to compare to the american 499$ is then 562$
Anyway, the end user must put down the full 702$ so a shopping trip to New York would be nice.

Actually the Danish price less the 25% tx is closer to 526 USD, End user will have to pay the 25% on top of that. If you travel to the US and purchase a few you can save yourself the trip. Maybe... if you get caught entering Denmark with 6 iPads stuffed down your pants my guess is you'll have to cough up all your saved kroners.
post #37 of 68
Quote:
Originally Posted by paxman View Post

Actually the Danish price less the 25% tx is closer to 526 USD, End user will have to pay the 25% on top of that. If you travel to the US and purchase a few you can save yourself the trip. Maybe... if you get caught entering Denmark with 6 iPads stuffed down your pants my guess is you'll have to cough up all your saved kroners.

No, the original poster's $562 figure is correct.

<math lesson>

562 + 25% = 702

You can't do 702 - 25% as your answer will be wrong...

702 - 25% = 526 but 526 + 25% = 657 not 702

</math lesson>
post #38 of 68
Quote:
Originally Posted by Mac.World View Post

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.


Sweet.. I picked up a 16gb White for $489 at a military base total out the door..
post #39 of 68
There is one issue with overseas pricing of Apple products, namely the price is fixed and rarely changes in the relatively lengthy gap between upgrades. However in that time currency rates can vary considerably. This isn't necessarily a disadvantage, I remember a few years back when sterling peaked at almost double the dollar and that reflected in the UK price, but when sterling's value fell the beneficial price remained for some time after. It does work the other way as well of course, so sometimes they are above the real US price, sometimes below. I would like to think that Apple sets their overseas prices according to some longer term mean to ensure equitability.
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Believe nothing, no matter where you heard it, not even if I have said it, if it does not agree with your own reason and your own common sense.
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post #40 of 68
This is entirely true, for the most part. However, it is very difficult to write an article based on iPad prices in various countries, especially because European and Danish taxes come into the picture as in any country. I almost never buy off of the Apple Store anymore, since the VAT expenses are currently at a 25% rate of the totalled price, which includes tax rates of any type, obviously. The iPad is quite expensive, but the MacBook Pros start at $1700 roughly over here, as an example.

Again, a fair comparison, but if you look at tax rates in particular, it is not. This is why I sometimes get people from the US to ship me Apple products in particular to Denmark, mainly because these have the biggest impact on my bank account if taxes are applied. I can easily aford the American price range as well as the shipping cost, but I cannot keep buying a new Apple product because of the massive prices in Denmark. Granted, I do not want, nor need the iPad. Even so, I partly think it is rude and outrageous at the difference in price on any product (not just Apple), but there is nothing I can do about it. I have the iPhone 3GS, and as a blind person it suits my needs just fine. I don't need a bigger device to carry around with me, nor do I need to replace my iThingies until iOS becomes too advanced for my current devices.

That having been said, I still wish there was a way to lower the taxes, somehow. But, that doesn't mean I'm going to complain about it beyond this comment. Ok, so maybe I will, but that's just because I'm slightly surprised by the price differences. I'll say this much. If I get a chance to win an iPad 2, I'll take it. But if I don't, I'll spend almost the same amount of money on a MacBook Pro when my current Mac gives out on me. This makes me a happy camper.
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