Apple hikes UK prices on some older Mac models by 20% in response to declining British pound

Posted:
in Current Mac Hardware
Apple raised the U.K. prices of some older Mac models overnight on Thursday, compensating for the slide in the pound's value since June's "Brexit" vote.




The Mac Pro -- which hasn't been updated in almost three years -- now costs 2,999 pounds ($3,650), up from 2,499 pounds, Bloomberg noted on Friday. The Mac mini, which was last updated in 2014, has been hiked from 399 pounds to 479 ($582).

"Apple suggests product prices internationally on the basis of several factors, including currency exchange rates, local import laws, business practices, taxes, and the cost of doing business," a spokesperson said in a boilerplate statement. "These factors vary from region to region and over time, such that international prices are not always comparable to U.S. suggested retail prices."

The pound's value has fallen 18 percent since June, leading a number of companies -- including Apple rival Microsoft -- to raise some of the their prices, while others have simply had to bear the expense.

Apple launched new MacBook Pro models earlier on Thursday. In the U.K., systems equipped with a Touch Bar and Touch ID start at 1,749 pounds, or $2,126, though that includes VAT charges.
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Comments

  • Reply 1 of 47
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
  • Reply 2 of 47
    1st1st Posts: 316member
    wow, that hurt a lot... what going to happen if Trump win? Similar Briexit effect to bring the price down?
  • Reply 3 of 47
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    but apple with there older hardware really should unless they plan to update them soon and don't want the new stuff to be a big price jump from the ones there are replacing.
  • Reply 4 of 47
    irnchrizirnchriz Posts: 1,581member
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    Standard business practice, suppliers increase prices, you either pass the price on or absorb it by having reduced profit.  Supermarkets have been doing this for a while as they don't want to be the first to increase prices, they normally start reducing package sizes before they increase pricing, e.g. 4 apples for a £ instead of 6 etc.  It depends on the business and the consumers price expectation.

    Apple lost me this time, Im not about to stump up and additional £700 for the equivalent new MacBook pro 15" (compared to £1999 for the previous 15" with 512GB storage). Its just not worth that price premium in the current economic climate.  Likewise the same for the 13" models.  I will likely ride out the storm of brexit and see what state the UK is in after it, not looking good so far.
    mobiusargonaut
  • Reply 5 of 47
    MacProMacPro Posts: 18,155member
    It works two ways, I don't see the British stepping up to make up the hit my pensions took that I receive here in the USA from the UK in £s.  Exchange rates are simple math and you have suck it up when it goes against your own interests.  Obviously I'd love to see the 22% loss I've had so far on pensions regained, just as British buyers would like see foreign imports go down in price.  The solution is for the £ to regain its strength not to whine that others should compensate us.

    I doubt it will ever happen but  perhaps a second referendum on Brexit might bring out the complacent to vote this time?  If not then it may be a long road but hopefully one day in the future the £ will recover.  Until it does I am just going to live with it and I suggest UK buyers will have to too.  It isn't just Apple products that cost more when your currency nose dives, my heart goes out to the British it truly does.  Never assuming your going to win in a vote is the lesson I hope we here in the USA take to heart!  IMHO voting should be mandatory both in the UK and America!
    edited October 2016 irnchrizlondorfotoformatroundaboutnowmobiusargonautaderutterbaconstang
  • Reply 6 of 47
    crowleycrowley Posts: 5,779member
    The solution is for the £ to regain its strength not to whine that others should compensate us.
    Is anyone doing that?
  • Reply 7 of 47
    irnchrizirnchriz Posts: 1,581member
    It works two ways, I don't see the British stepping up to make up the hit my pensions took that I receive here in the USA from the UK in £s.  Exchange rates are simple math and you have suck it up when it goes against your own interests.  Obviously I'd love to see the 22% loss I've had so far on pensions regained, just as British buyers would like see foreign imports go down in price.  The solution is for the £ to regain its strength not to whine that others should compensate us.

    I doubt it will ever happen but  perhaps a second referendum on Brexit might bring out the complacent to vote this time?  If not then it may be a long road but hopefully one day in the future the £ will recover.  Until it does I am just going to live with it and I suggest UK buyers will have to too.  It isn't just Apple products that cost more when your currency nose dives, my heart goes out to the British it truly does.  Never assuming your going to win in a vote is the lesson I hope we here in the USA take to heart!  IMHO voting should be mandatory both in the UK and America!
    I agree with all of what you have said but I think, looking at the UK on Brexit and the upcoming USA elections, they shouldn't give anyone a vote as its becoming clear that people are just plain dumb and will vote against their own interests.  :disappointed: 
    londorjibberjargonaut
  • Reply 8 of 47
    crowleycrowley Posts: 5,779member
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    Businesses work in whatever way it takes to sell things to people.  Raising prices when you don't have to is generally not an effective way to do that.

    Evidence?  The retail struggles to keep prices the same are playing out in public: http://www.bbc.co.uk/news/business-37639518
    edited October 2016
  • Reply 9 of 47
    MacProMacPro Posts: 18,155member
    crowley said:
    The solution is for the £ to regain its strength not to whine that others should compensate us.
    Is anyone doing that?
    I said "The solution is for the £ to regain its strength not to whine that others should compensate us. "

    "Is any one doing that?"  Well your question is unfortunately badly worded.  Do you ask is anyone trying to strengthen the £ or is anyone whining?  If the former then I am not qualified to answer, if the latter, then yes, anyone commenting Apple has 'adjusted its prices' are in denial that exchange rates are simply mathematics.  Any discussion following the comment regarding adjusting prices or people writing this is not nice of Apple are in denial also.
    edited October 2016 argonaut
  • Reply 10 of 47
    sflagelsflagel Posts: 585member
    irnchriz said:
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    Standard business practice, suppliers increase prices, you either pass the price on or absorb it by having reduced profit.  Supermarkets have been doing this for a while as they don't want to be the first to increase prices, they normally start reducing package sizes before they increase pricing, e.g. 4 apples for a £ instead of 6 etc.  It depends on the business and the consumers price expectation.

    Apple lost me this time, Im not about to stump up and additional £700 for the equivalent new MacBook pro 15" (compared to £1999 for the previous 15" with 512GB storage). Its just not worth that price premium in the current economic climate.  Likewise the same for the 13" models.  I will likely ride out the storm of brexit and see what state the UK is in after it, not looking good so far.
    Maybe Theresa May can give Apple "assurances", ie money, that they wont be affected by Brexit....
    argonaut
  • Reply 11 of 47
    sflagelsflagel Posts: 585member
    It works two ways, I don't see the British stepping up to make up the hit my pensions took that I receive here in the USA from the UK in £s.  Exchange rates are simple math and you have suck it up when it goes against your own interests.  Obviously I'd love to see the 22% loss I've had so far on pensions regained, just as British buyers would like see foreign imports go down in price.  The solution is for the £ to regain its strength not to whine that others should compensate us.

    I doubt it will ever happen but  perhaps a second referendum on Brexit might bring out the complacent to vote this time?  If not then it may be a long road but hopefully one day in the future the £ will recover.  Until it does I am just going to live with it and I suggest UK buyers will have to too.  It isn't just Apple products that cost more when your currency nose dives, my heart goes out to the British it truly does.  Never assuming your going to win in a vote is the lesson I hope we here in the USA take to heart!  IMHO voting should be mandatory both in the UK and America!
    Voters were not complacent/ Uk should just have another vote in 5 years and by then, most of the Brexit voters will have died of natural causes.
    edited October 2016 argonautwilliamlondon
  • Reply 12 of 47
    crowleycrowley Posts: 5,779member
    crowley said:
    The solution is for the £ to regain its strength not to whine that others should compensate us.
    Is anyone doing that?
    I said "The solution is for the £ to regain its strength not to whine that others should compensate us. "

    "Is any one doing that?"  Well your question is unfortunately badly worded.  Do you ask is anyone trying to strengthen the £ or is anyone whining?  If the former then I am not qualified to answer, if the latter, then yes, anyone commenting Apple have 'adjusted their prices' are in denial that exchange rates are simply mathematics.  Any discussion following the comment regarding adjusting prices or people writing this is not nice of Apple are in denial also.
    Again, is anyone doing that?  It's a follow on question that pretty clearly refers to the thing that you're implying some people are doing - "whin(ing) that others should compensate us"

    Observing that the prices have gone up, and that makes the products less appealing is not whining.  You're suggesting that some people are saying they should be compensated by someone.  Who is doing that?

    Further to this, the cause of the exchange rate fluctuation is the vote to exit the EU, something that many people voted against.  I don't think it's suprising that people might be a bit narked that something they don't want is going to hit them in their wallet.  If you want to call that "whining", well that's politics.
    edited October 2016
  • Reply 13 of 47
    MacProMacPro Posts: 18,155member

    crowley said:
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    Businesses work in whatever way it takes to sell things to people.  Raising prices when you don't have to is generally not an effective way to do that.

    Evidence?  The retail struggles to keep prices the same are playing out in public: http://www.bbc.co.uk/news/business-37639518
    Apple didn't raise the price, the price was altered by exchange rates.  When I cash a £ check at Wells Fargo and I get 22% less should I ask them why they lowered the amount of $s I get?  No, I have a brain and know the exchange rate went down.  Whining at the lady in the bank would be stupidity.  In fact I see her often and she kindly winced and said 'Ouch' as she isn't stupid either.

    What you are suggesting is others absorb the exchange rate.  I'd like that too, want to contribute to my pension?  Perhaps I should ask Wells Fargo (who have lots of money) to make it up for me?  I suspect they'd point out that's not how business works, whatever you may want to believe. 
    edited October 2016 mwhiteargonautwilliamlondon
  • Reply 14 of 47
    crowleycrowley Posts: 5,779member

    crowley said:
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    Businesses work in whatever way it takes to sell things to people.  Raising prices when you don't have to is generally not an effective way to do that.

    Evidence?  The retail struggles to keep prices the same are playing out in public: http://www.bbc.co.uk/news/business-37639518
    No one raised the price, the price was altered by exchange rates.  When I cash a £ check at Wells Fargo and I get 22% less should I ask them why they lowered the amount of $s I get?  No, I have a brain and know the exchange rate went down.  Whining at the lady in the bank would be stupidity.  In fact I see her often and she kindly winced and said 'Ouch' as she isn't stupid either.
    Don't be obtuse.  The price of the Mac Pro was £2,499 last week, and £2,999 this week.  That's a price rise.  The exchange rate has not changed significantly since last week, so Apple have consciously decided that this was the time to raise prices.  

    Exchanging currency directly is a totally different kettle of fish.  Apple's prices in the UK are not listed in $.
    edited October 2016 asdasd
  • Reply 15 of 47
    crowleycrowley Posts: 5,779member

    What you are suggesting is others absorb the exchange rate.  I'd like that too, want to contribute to my pension?  Perhaps I should ask Wells Fargo (who have lots of money) should make it up for me?
    I suggested no such thing.
  • Reply 16 of 47
    xmbxmb Posts: 13member
    Did Apple lower the prices when the pound went up against the dollar? Products are always priced to some extent on what the market will withstand. It is unlikely Apple would have made a loss by holding the old UK prices but they are trying to maintain (or increase) their profits. Hopefully less Britt's will buy at these inflated prices and force the price down. If not maybe they will hold off their purchases and wait for the pound to recover. The question is will Apple reduce their price when the pound is stronger?
  • Reply 17 of 47
    irnchrizirnchriz Posts: 1,581member
    crowley said:

    crowley said:
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    Businesses work in whatever way it takes to sell things to people.  Raising prices when you don't have to is generally not an effective way to do that.

    Evidence?  The retail struggles to keep prices the same are playing out in public: http://www.bbc.co.uk/news/business-37639518
    No one raised the price, the price was altered by exchange rates.  When I cash a £ check at Wells Fargo and I get 22% less should I ask them why they lowered the amount of $s I get?  No, I have a brain and know the exchange rate went down.  Whining at the lady in the bank would be stupidity.  In fact I see her often and she kindly winced and said 'Ouch' as she isn't stupid either.
    Don't be obtuse.  The price of the Mac Pro was £2,499 last week, and £2,999 this week.  That's a price rise.  The exchange rate has not changed significantly since last week, so Apple have consciously decided that this was the time to raise prices.  

    Exchanging currency directly is a totally different kettle of fish.  Apple's prices in the UK are not listed in $.
    When Apple set a price point they do so with a profit margin set to cover them for quite a long time. Over the last few moths they will have been making lass per Apple device sold than when the prices were originally set due to the weak pound. You can only do this so long and they have taken the launch of the new devices to rectify the pricing. 

    IF the pound regains its value then you could see an adjustment down in price, Apple have done this once before. 
    mwhiteargonaut
  • Reply 18 of 47
    crowleycrowley Posts: 5,779member
    irnchriz said:
    crowley said:

    crowley said:
    "...while others have simply had to bear the expense."

    That's not how businesses work. What are the supporting examples for this?
    Businesses work in whatever way it takes to sell things to people.  Raising prices when you don't have to is generally not an effective way to do that.

    Evidence?  The retail struggles to keep prices the same are playing out in public: http://www.bbc.co.uk/news/business-37639518
    No one raised the price, the price was altered by exchange rates.  When I cash a £ check at Wells Fargo and I get 22% less should I ask them why they lowered the amount of $s I get?  No, I have a brain and know the exchange rate went down.  Whining at the lady in the bank would be stupidity.  In fact I see her often and she kindly winced and said 'Ouch' as she isn't stupid either.
    Don't be obtuse.  The price of the Mac Pro was £2,499 last week, and £2,999 this week.  That's a price rise.  The exchange rate has not changed significantly since last week, so Apple have consciously decided that this was the time to raise prices.  

    Exchanging currency directly is a totally different kettle of fish.  Apple's prices in the UK are not listed in $.
    When Apple set a price point they do so with a profit margin set to cover them for quite a long time. Over the last few moths they will have been making lass per Apple device sold than when the prices were originally set due to the weak pound. You can only do this so long and they have taken the launch of the new devices to rectify the pricing. 

    IF the pound regains its value then you could see an adjustment down in price, Apple have done this once before. 
    No shit, sherlock.
    edited October 2016
  • Reply 19 of 47
    Well in Canada our dollar has fallen from about par to the US dollar a few years ago to a current exchange rate of about 1.34 Canadian to 1 US - looking at the mac laptop I would like to buy, the upper stock 15", it would be $2800 US or $3500 Canadian - that's a markup of only 25% - 34% would be $3750 so Apple is actually offering Canadians a currency adjusted deal - still too much for me to afford but would be nice
    mwhiteasdasd
  • Reply 20 of 47
    So what's their excuse for drastically hiking the price of iMacs in the U.S.? No one is reporting on this. 
    duervo
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