Apple called to testify in Australian price gouging probe

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Comments

  • Reply 21 of 40
    vorsosvorsos Posts: 302member


    lightknight View Post

    Ridiculous. The problem is not pricing. It's the fact you get different prices based on the country you sell in. There should not be an "Australian App Store", an "American App Store" and so on. It's the same bloody software.

    I could understand the price being different based on software being localized, but I'm prevented from playing the US version, since it's an artificial limit.

    And give me a break on "it's due to legal requirements". This, here, is the "legal requirement"-makers questioning the prices instead if the structure.


    It just costs more to ship those digital, er, goods... hmm. Fair enough. But some countries do have strict software restrictions, and others have tech export restrictions. That's why you couldn't legally send a PS2 to certain 'dangerous' countries, because the chips were powerful enough to guide missiles. China alone has so many rules about networked information that a curated worldwide app store is simply unfeasible. Stratification of the iOS App Store is a much easier way to deal with all those exceptions than (mis)handling them on a case-by-case basis. And I'm actually cool with not having a billion foreign language only apps in my search results...


    As for the iTunes music store, it's per-country licensing and copyright. No getting the store around that.


     



    jragosta View Post

    It costs more to do business in Europe. Work weeks are shorter (which means more employees to do a job). Benefits are much higher. Transportation costs are higher. I don't know if those added costs make up for the difference, but it's a moot point, anyway. 


     


    Absolutely. Every international company has to look at the total cost of doing business in each country. Consider that Walmart has the lowest (US) retail prices, but those are subsidized by the wage slave who is ringing your purchases.


     


    You can't be jealous of US prices without taking the entire package. With low prices come low pay and atrocious-to-nonexistent benefits for the majority of workers. Low prices are essentially kept in place by an ineffectual Congress who doesn't let the minimum wage keep pace with cost of living.


     


    Are you willing to give up all your government and employee benefits to save money on big retail purchases? Is it worth the trade-off?

  • Reply 22 of 40
    gatorguygatorguy Posts: 24,213member

    Quote:

    Originally Posted by xtacee1990 View Post


     


    Honestly I'm bewildered as to how you can cite American laws regarding an issue in AUSTRALIA. Yes both are common law countries but regarding corporations/ business laws one should not expect both jurisdictions to have the same legislation.



    Ummmm... I think that's what I said isn't it? Yet you're bewildered?image The response was in reply to a comment from Jragosta who most certainly was depending on his understanding of US law and not Australian.


     


    Anyway, thanks for finding a citation at a help page from New South Wales government, tho If you're claiming as a fact that a subpoena cannot be legally addressed to a corporation itself in Australia I'd rather see a cite from their bar association rather than a self-help webpage. No biggie in either case, particularly since the article doesn't specify whether the subpoena was served in the US or in Australia, and not even sure if that matters. 


     


    Apologies for the distraction.

  • Reply 23 of 40

    Quote:

    Originally Posted by hfts View Post



    Nothing will happen, if will blow over and we will still be cheated as we have been for decades.

    These large companies are all guilty, although it would be nice for Apple to come clean, but this would be an admission of guilt.




    Guilty of what?  Selling their products for whatever price they choose?  I guess you could say they are "guilty" of being dicks, but that is about it.  You could always stop buying the products that are overpriced.

  • Reply 24 of 40

    Quote:

    Originally Posted by saarek View Post


    Apple happily rips off anyone who does not buy from the US. Anywhere from 10-20% premium for the same equipment, quick and easy examples are:


     


    Apple TV UK Price is £99 or $155.24, now to be fair the UK includes VAT at 20% so how does it compare to the US? Well $99 + 20% = $118.80 so us Brits pay an extra $36.44


     


    Entry level 13" MacBook Pro, UK Price is £999 or $1566.78 US price is $1199, so $1199 + 20% = $1438.80 so us Brits pay another $127.98


     


    Never fear Australians, Apple screws everyone who is not an American and they can get away with it too because only Apple sells MacBook's and Apple TV's and iMac's. Sure, you could buy a Dell or an HP or any other manufacturer and pretty much pay the same as the American general public, but you wont, because you want that MacBook because it's better than the virus invested pieces of shit that everyone else makes.


     


    Sure it hurts that Apple screws you over because you're not an American, it would be nice if they treated all of their customers fairly but they are a business and as long as they can continue to bend you over and take the money from your wallet they will do so.





    So the take away from your post is that even at the higher price you are still a buyer.  Why would they change if you don't stop buying.  It is like gasoline prices, Exxon et. al. charge whatever they think they can get away with, not what it actually costs.  Although I would have a harder time not buying gas to drive to work than I would not having my iPad.

  • Reply 25 of 40
    saareksaarek Posts: 1,523member

    Quote:

    Originally Posted by jragosta View Post



    There is no reason why we can't get this stuff on the US itunes store except for historic import and regional copyright restrictions. And they wonder why piracy is so rampant in this country.[/quote]



    As you point out, copyright laws are difference (as well as other laws). If Apple ignored the copyright laws and instead chose to sell US products in Australia, everyone would be complaining just as loudly.



    You make the laws there, you get to deal with the consequences.

    It costs more to do business in Europe. Work weeks are shorter (which means more employees to do a job). Benefits are much higher. Transportation costs are higher. I don't know if those added costs make up for the difference, but it's a moot point, anyway.



    Pricing is set by what the market will pay. If you think it's too expensive, don't buy it. If enough people think it's too expensive and stop buying, they'll lower the price. Unless someone has repealed the law of supply and demand, Apple doesn't arbitrarily set the prices. They set the prices based on market conditions.



    So all the complaining about Apple's prices should be targeted at your countrymen. Apple charges more because you're willing to pay it. That's the way a free market business works.





    Oh, and btw, AI, please hire some writers with a clue. You can't subpoena a company. Rather, you subpoena executives from the company.


    Average minimum working week in the UK is 35 hours, although you'll find that 37.5 - 40 hours is what most people actually do. How many hours a week do Americans work on average? Genuinely interested.

  • Reply 26 of 40

    Quote:

    Originally Posted by hfts View Post



    These large companies are all guilty


     


    Guilty of what crime? Setting an unpopular price is not a crime. Do you want your government to set the price on products? That's one way to force companies to stop selling into your country.

  • Reply 27 of 40
    vorsosvorsos Posts: 302member


    saarek View Post


    Average minimum working week in the UK is 35 hours, although you'll find that 37.5 - 40 hours is what most people actually do. How many hours a week do Americans work on average? Genuinely interested.



     


    Generally, if you regularly work something like 37-40 hours a week, your employer is required to offer certain benefits. Most professional careers offer this. But our largest growth sector is the service industry, where companies just hire more people and have everyone work 30 or fewer. With the eroding of our middle class (though not quite at Spain's level), we have more service workers but the same amount of professionals. Upward social mobility is becoming increasingly difficult.

  • Reply 28 of 40
    tbelltbell Posts: 3,146member

    Quote:

    Originally Posted by lightknight View Post



    Ridiculous. The problem is not pricing. It's the fact you get different prices based on the country you sell in. There should not be an "Australian App Store", an "American App Store" and so on. It's the same bloody software.

     


     


    I'd say it is hard to come to that conclusion unless you understand the companies thinkings for charging more in a particular country. In the US, we pay more for the same prescriptions that you can go to Canada and Mexico to get for much cheaper. In the US, the reason is clearly price gouging. However, it is a fact that different Countries have different taxes and fees associated with the sale of a product. Does Australia charge an import tax, what are local taxes like, are there fees, what is a retailers cut, for online software is the cost higher to deliver data in a particular country, etc.?

  • Reply 29 of 40
    Lets break down the factors.

    When they say $2700 are they talking US or Australian currency. If that's AU then what the currency rate.

    Built in taxes? GST, VAT, whatever. What's the price without that amount.

    Are there mandated taxes for imported goods? Do the laws allow passing that onto consumers.

    Seems to me that the last is perhaps yes and thus could be a legal issue in that the laws this government made are hurting their people. They need to look at the issue and perhaps modify their laws. Such as a lower tax rate if the item is downloaded and not disc sold. Or limiting how much of said taxes can be past on to the cost.

    Another item might be requiring companies to price adjust for currency on a more regular basis. It might be deemed prohibitive to constantly flux in a daily basis but adjusting prices for the current market every 3-4 months would be reasonable. Set dates for the pick of the rate like say 1 jan, 1 April etc and give them a deadline of like 7-10 days to implement.
  • Reply 30 of 40
    What is the tax and regulations in Australia as compared to other countries? Why would everyone want to single out Australia?
  • Reply 31 of 40
    quinneyquinney Posts: 2,528member
    It's the poisonous snake premium.
  • Reply 32 of 40

    Quote:

    Originally Posted by charlituna View Post



    Lets break down the factors.



    When they say $2700 are they talking US or Australian currency. If that's AU then what the currency rate.



    Built in taxes? GST, VAT, whatever. What's the price without that amount.



    Are there mandated taxes for imported goods? Do the laws allow passing that onto consumers.



    Seems to me that the last is perhaps yes and thus could be a legal issue in that the laws this government made are hurting their people. They need to look at the issue and perhaps modify their laws. Such as a lower tax rate if the item is downloaded and not disc sold. Or limiting how much of said taxes can be past on to the cost.



    Another item might be requiring companies to price adjust for currency on a more regular basis. It might be deemed prohibitive to constantly flux in a daily basis but adjusting prices for the current market every 3-4 months would be reasonable. Set dates for the pick of the rate like say 1 jan, 1 April etc and give them a deadline of like 7-10 days to implement.




    Like others here who have thought about the issues rather than taking things like our government, in very simplistic terms, you cover many of the complexities involved here.


     


    The irony of this whole enquiry, is that this government, actually approved of the pricing differential that Australian's pay. They effectively banned the grey importing by retailers of books into our country, to protect the local distributors. Which is in the case of Apple where they are quoting the largest price differences from those being sold in the US.


     


    And while many decry Apple in the media, hey it is a media sport thats been going on for years, they at least do "allow" work arounds, I have a US account which I use when a price differential is worth the effort. Most of the media here LEAD with the words Apple in the headlines when discussing price gouging, then straight away use Microsoft and Adobe's price margin differentials as examples. In essence Apple's gouging maybe at WORST be around 5-10% over the US price factoring in our GST, currency fluctuations etc. There is NO import duty like the UK as we have a free trade agreement with the US.


     


    And the biggest differential is in electronic BOOKS, where no surprise, grey marketing is not allowed by the VERY government that is conducting the enquiry. Apple is in effect a licensed distributor by the owners of these products. The owner of the content, NOT Apple sets the price.


     


    So when these idiots get Apple to talk, they may just have egg on their face, when they discover its they who have permitted any Apple price gouging. But then our current political masters have a great habit of shooting themselves in the foot with their own unthought out policies.


     


    Also one other factor NOT accounted for by many is that in Australia you can often get iTunes cards at 30% discount off face value. These discounts are far and few between in the US.


     


    Now Adobe and Microsoft have different cases to answer, as the prices they are gouging with are theirs entirely.

  • Reply 33 of 40
    macrulezmacrulez Posts: 2,455member


    deleted

  • Reply 34 of 40
    saarek wrote: »
    Apple happily rips off anyone who does not buy from the US. Anywhere from 10-20% premium for the same equipment, quick and easy examples are:

    Apple TV UK Price is £99 or $155.24, now to be fair the UK includes VAT at 20% so how does it compare to the US? Well $99 + 20% = $118.80 so us Brits pay an extra $36.44

    Entry level 13" MacBook Pro, UK Price is £999 or $1566.78<span style="line-height:1.231;"> US price is $1199, so $1199 + 20% = $1438.80 so us Brits pay another $127.98</span>


    <span style="line-height:1.231;">Never fear Australians, Apple screws everyone who is not an American and they can get away with it too because only Apple sells MacBook's and Apple TV's and iMac's. Sure, you could buy a Dell or an HP or any other manufacturer and pretty much pay the same as the American general public, but you wont, because you want that MacBook because it's better than the virus invested pieces of shit that everyone else makes.</span>


    Sure it hurts that Apple screws you over because you're not an American, it would be nice if they treated all of their customers fairly but they are a business and as long as they can continue to bend you over and take the money from your wallet they will do so.

    Why don't you wait until Apple has has their say before crying foul. If they have a legitimate reason, then you will have your answer and can either continue to grab your ankles or try something different. I am not well versed in the fields of import tariffs and the like but their may be a good reason for the pricing. On the other hand their might not be we just need to wait and see.
  • Reply 35 of 40


    Originally Posted by saarek View Post

    Apple happily rips off anyone who does not buy from the US. Anywhere from 10-20% premium for the same equipment, quick and easy examples are:


     


    Yes, that couldn't possibly be the price of international business. Nope. Certainly not having to deal with increased or different regulation, shipping and logistics, and the cost of building out support services for one hundred different countries. 


     


    For crying out loud.


     


    When I was in Ireland, I saw half pints of Ben & Jerry's. Seven euro. At the time, that was roughly $14. And Cadbury? It's more expensive in the US than there. I wonder why. image


     


    Enjoy your FUD.

  • Reply 36 of 40
    jragostajragosta Posts: 10,473member
    macrulez wrote: »

    "Buy One, Get One" is effectively half-price, making them infinitely more expensive than Apple's iPhone 4 which sells for $0.

    Do you imagine that iPhone 4 customers are "trailer park trash"?

    Actually, both of those statements are wrong.

    First, "Buy one, get one free" is not half price. Let's say the phone is $199 plus a two year contract (which will cost you something like $2,000. BOGO, means $199 plus TWO two year contracts, so it's $4199 vs $2199. Hardly half price.

    And the iPhone 4 is not $0. It's $0 plus a 2 year contract - or something like $2,000.
  • Reply 37 of 40
    macrulezmacrulez Posts: 2,455member


    deleted

  • Reply 38 of 40
    jragosta wrote: »
    There is no reason why we can't get this stuff on the US itunes store except for historic import and regional copyright restrictions. And they wonder why piracy is so rampant in this country.

    As you point out, copyright laws are difference (as well as other laws). If Apple ignored the copyright laws and instead chose to sell US products in Australia, everyone would be complaining just as loudly.

    You make the laws there, you get to deal with the consequences.
    It costs more to do business in Europe. Work weeks are shorter (which means more employees to do a job). Benefits are much higher. Transportation costs are higher. I don't know if those added costs make up for the difference, but it's a moot point, anyway.

    Pricing is set by what the market will pay. If you think it's too expensive, don't buy it. If enough people think it's too expensive and stop buying, they'll lower the price. Unless someone has repealed the law of supply and demand, Apple doesn't arbitrarily set the prices. They set the prices based on market conditions.

    So all the complaining about Apple's prices should be targeted at your countrymen. Apple charges more because you're willing to pay it. That's the way a free market business works.


    Oh, and btw, AI, please hire some writers with a clue. You can't subpoena a company. Rather, you subpoena executives from the company.[/quote]

    You're very pretentious and self-righteous for someone who doesn't actually know Apples inner workings.
    I suggest you wait until after Apple have answered to the Australian body before you go off spouting your theories as flawless fact.
  • Reply 39 of 40

    Quote:

    Originally Posted by MacRulez View Post




    "Buy One, Get One" is effectively half-price, making them infinitely more expensive than Apple's iPhone 4 which sells for $0.


     


    Do you imagine that iPhone 4 customers are "trailer park trash"?



    Your appropriate acro is "OTL": the word 'bogan' (note the spelling) is in fact an Aussie expression and has no relation with 'BOGO", as you have facilely presumed. Rednecks and 'trailer trash' can oft be significantly better informed, and less puerile.


     


    Cheers

  • Reply 40 of 40
    macrulezmacrulez Posts: 2,455member


    deleted

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