Rip Off Apple prices in Europe

Posted:
in iPod + iTunes + AppleTV edited January 2014
Example



Ipod 15 Gig



US$299

= 249 ? converted from US$ to Euros using current exchange rate





Actual Euro price = 349 ? !!!!





What gives?
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Comments

  • Reply 1 of 32
    nebrienebrie Posts: 483member
    Almost every international company on earth does this, even companies not based in America that sell to America do this in America. My guess is tariffs.
  • Reply 2 of 32
    That is a $127 price difference on something that has no tarrifs. Try again.
  • Reply 3 of 32
    messiahmessiah Posts: 1,689member
    Quote:

    Originally posted by musicaltone

    That is a $127 price difference on something that has no tarrifs. Try again.



    I believe that the prices displayed on the Apple US website do not include sales tax, because the actual sales tax you pay varies from state to state.



    When I was on holiday in NYC in October, I though everything was a bargain, because the vendors don't have to include the sales tax in the advertised price. They add it on at the till - which blindsided me the first time.



    Prices on the Apple UK website already include 17.5% VAT. Plus, our warranties are longer. So, once you take all these considerations into account you will realise - yes they still fsck us in the a$$.
  • Reply 4 of 32
    g-dogg-dog Posts: 171member
    Except if you live in Oregon.

    Which I do.



    No sales tax. What price you see, you get.



    Damn it feels good sometimes to live here.
  • Reply 5 of 32
    Perhaps the US market is the loss leader and the rest of the world is paying for it all - it certainly starts to look like it when you consider the price differentials. No way do local taxes make up that difference. VAT is a lot lower than 17% in other parts of Europe yet the price remains ....



    Luckily for me I am over 30 and have long since realised that walkmans are gimicks at the end of the day.
  • Reply 6 of 32
    messiahmessiah Posts: 1,689member
    For instance, based roughly on the ballpark exchange rate of £2 buys you $3, no VAT or equivalent US Sales Tax:



    Power Mac G5, 1.6GHz = £1,190 = $1785 (actual price $1799)

    Power Mac G5, Dual 1.8GHz = £1,616 = $2424 (actual price $2499)

    Power Mac G5, Dual 2.0GHz = £1,956 = $2934 (actual price $2999)



    PowerBook G4, 12" Combo = £1,105 = $1658 (actual price $1599)

    PowerBook G4, 12" SuperDrive = £1,233 = $1850 (actual price $1799)

    PowerBook G4, 15" Combo = £1,360 = $2040 (actual price $1999)

    PowerBook G4, 15" SuperDrive = £1,701 = $2552 (actual price $2599)

    PowerBook G4, 17" SuperDrive = £2,041 = $3062 (actual price $2999)



    iBook G4, 800MHz = £722 = $1083 (actual price $1099)

    iBook G4, 933MHz = £850 = $1275 (actual price $1299)

    iBook G4, 1GHz = £1,020 = $1530 (actual price $1499)



    iMac G4, 15" Combo = £850= $1275 (actual price $1299)

    iMac G4, 17" SuperDrive = £1,233 = $1850 (actual price $1799)

    iMac G4, 20" SuperDrive = £1,488 = $2232 (actual price $2199)



    eMac G4 Combo = £552 = $828 (actual price $799)

    eMac G4 SuperDrive = £723 = $1085 (actual price $1099)



    iPod 15GB = £212 = $318 (actual price $299)

    iPod 20GB = £254 = $381 (actual price $399)

    iPod 40GB = £340 = $510 (actual price $499)



    17" Studio Display = £467 = $701 (actual price $699)

    20" Cinema Display = £893 = $1340 (actual price $1299)

    23" Cinema HD Display = £1,360 = $2040 (actual price $1999)



    Panther = £84 = $126 (actual price $129)

    iLife = £33 = $50 (actual price $49)

    .Mac = £59 = $89 (actual price $100)



    Which means that a number of Apple products are actually slightly cheaper in the UK than they are in the US. Of course, if you buy something on Madison Ave, the US Government want their 11% (is that right?), whilst the UK Government shaft you to the tune of 17.5%.



    Could somebody please check my math?



    It would appear that Apple doesn't shaft the UK at all - and that my earlier post was wrong - it's the UK Government that are a bunch of money grabbing...
  • Reply 7 of 32
    bungebunge Posts: 7,329member
    US warranty = 1 year.

    Euro warranty = 2 years.
  • Reply 8 of 32
    Quote:

    Originally posted by musicaltone

    Example



    Ipod 15 Gig



    US$299

    = 249 ? converted from US$ to Euros using current exchange rate





    Actual Euro price = 349 ? !!!!





    What gives?




    Would you like French or German cheese to go with your whine?



    Relax, take a deep breath. First, let's pretend that there's no exchange rate. Remember, when the Teuro, Euro first came out, it was 1-to-1 with the dollar, and then promptly dropped (good for me). Now it's stronger than the dollar (bad for me). Businesses like Apple can't change their prices daily based on the exchange rate. Let's just pretend it's 1-to-1.



    Now for some math. Let's take ?299 and add 16% tax on it. That's ?346.84.



    Now, can you explain why German WMF products are expensive in America? Or why most Japanese products are about the same prices in America or Europe?
  • Reply 9 of 32
    stoostoo Posts: 1,490member
    Quote:

    For instance, based roughly on the ballpark exchange rate of £2 buys you $3, no VAT or equivalent US Sales Tax



    Today £2 buys slightly more than $3.6.
  • Reply 10 of 32
    messiahmessiah Posts: 1,689member
    Quote:

    Originally posted by Stoo

    Today £2 buys slightly more than $3.6.



    Bloody Hell!



    Nice one!



    So the 2.0 G5 dualie is $2999. So if we get a little more than $1.8 to the pound, we could take a little trip to the USA and get out hands on one for £1666 + sales tax = £1849, + UK customs at 17.5% = £2,173. That's got to be a first!



    So the stronger the exchange rate, the more we effectively pay in the UK - why pay £2,499 when even with all the taxes added you can buy one in NYC for £2,173.



    Plus, I think you can claim back the US Sales Tax that you paid, and I think customs let you off with the tax on the first £250 or so (I think).
  • Reply 11 of 32
    @homenow@homenow Posts: 998member
    Quote:

    Originally posted by Stoo

    Today £2 buys slightly more than $3.6.



    Actual price of goods sold internationally does not fluctuate daily to adjust for the daily currency exchange rate. Imagine what kind of chaos doing that would cause on every economy, the extra man hours to calculate and mark all of those products at least once a day would add a lot to the cost of all goods sold. It would also add a lot of time to the shopping process for goods, people holding out another day to buy with the hopes that the rate changes in their favor tomorrow. That happens with gas, which fluctuates about 20¢ a gallon in my area depending on the day of the week that you buy it.



    I think that international corporations adjust prices no more than once a quarter, so if the exchange rate stays where it is today for 2-3 more months you may see a drop in prices in Europe to adjust for this. Daily fluctuations for better or worse are absorbed into the cost of doing business on an international scale. Be thankful that your every day expenses are shielded from the daily fluctuations in currency and commodity prices that businesses have to deal with.



    When I was stationed in Italy during the early 90's I say the Lira fluctuate from around 1000-1700 to the dollar in a 2 year period. It was always a crap shoot on when to exchange your money.
  • Reply 12 of 32
    @homenow@homenow Posts: 998member
    Quote:

    Originally posted by Messiah

    Bloody Hell!



    Nice one!



    So the 2.0 G5 dualie is $2999. So if we get a little more than $1.8 to the pound, we could take a little trip to the USA and get out hands on one for £1666 + sales tax = £1849, + UK customs at 17.5% = £2,173. That's got to be a first!



    So the stronger the exchange rate, the more we effectively pay in the UK - why pay £2,499 when even with all the taxes added you can buy one in NYC for £2,173.



    Plus, I think you can claim back the US Sales Tax that you paid, and I think customs let you off with the tax on the first £250 or so (I think).




    I remember in the '80's a friends parents bought a Porsche. The went to Germany to buy it, round trip and shipping for the car back to the US cost them less than if they would have bought it through the local Porsche dealer.
  • Reply 13 of 32
    Quote:

    Originally posted by @homenow

    I remember in the '80's a friends parents bought a Porsche. The went to Germany to buy it, round trip and shipping for the car back to the US cost them less than if they would have bought it through the local Porsche dealer.



    Mercedes offered (offers?) a service for exactly this. I think one of the main advantages was a lower import tax on "used" (i.e. two week old) cars...
  • Reply 14 of 32
    Quote:

    Originally posted by GSpotter

    Mercedes offered (offers?) a service for exactly this. I think one of the main advantages was a lower import tax on "used" (i.e. two week old) cars...



    I know BMW and Porsche (but not Audi) have such programs. I don't know about Mercedes (Daimler). What you're doing is buying it from a US dealer and taking delivery in Germany. After trying to drive a fresh engine as fast as possible on the autobahn, buyers drop the car off in Europe and wait a few weeks to pick it up in the States. The cars are considered new.



    It is generally no longer possible to buy a Euro-spec car in Europe and ship it to the US.



    However, the opposite is true. I've seen BMW prices cheaper in America (especially after European taxes). These can be sent to Germany, for example, as used if older than one year.



    Still, this Apple issue with Euro and Dollar is an old one. I had read that Apple has tried to address this issue by using the Euro=Dollar formula in Europe sometime last year, as the Euro numbers were generally running higher than Dollar numbers. How taxes are factored in still baffles me, though, as hardware prices are higher than software prices (e.g., Final Cut Pro is the same in Euro and Dollars, but Powerbooks aren't).
  • Reply 15 of 32
    Quote:

    Originally posted by Messiah



    iPod 15GB = £212 = $318 (actual price $299)

    iPod 20GB = £254 = $381 (actual price $399)

    iPod 40GB = £340 = $510 (actual price $499)





    Could somebody please check my math?





    Sure. The exchange rate is actually UK £1 to US $1.8



    Therefore, using your tax free UK prices:



    iPod 15GB = £212 = $381 (actual price $299) > Shafted, almost $100 more

    iPod 20GB = £254 = $457 (actual price $399) > Shafted, $60 more

    iPod 40GB = £340 = $612 (actual price $499) > Shafted, over $100 more.



    On balance, Apple charge roughly $100 more in the UK than in the US for their iPod line.



    As to the warranty issue, it is the EU that has introduced this, not Apple. And Apple are not selling iPods at a premium in the UK on the basis of extended warranties. In fact, the iPod battery program has yet to appear over here. Shafted.
  • Reply 16 of 32
    Quote:

    Originally posted by musicaltone

    That is a $127 price difference on something that has no tarrifs. Try again.



    That happens with almost everything..

    Irish sausage in the US is $5 a pound(good stuff though). I can get american sausage for less than $2.... sure its not a mac, but same thing, stuff like this happens everywhere.
  • Reply 17 of 32
    Quote:

    Originally posted by G-Dog

    Except if you live in Oregon.

    Which I do.



    No sales tax. What price you see, you get.



    Damn it feels good sometimes to live here.




    Thats why I drive to NH for all my big mac purchases. no sales tax.. of course, in MA they say you are supposed to fill out some form for out of state purchases and crap. I aint doing that, screw em.
  • Reply 18 of 32
    eugeneugen Posts: 14member
    Quote:

    Originally posted by musicaltone

    Sure. The exchange rate is actually UK £1 to US $1.8



    Therefore, using your tax free UK prices:



    iPod 15GB = £212 = $381 (actual price $299) > Shafted, almost $100 more

    iPod 20GB = £254 = $457 (actual price $399) > Shafted, $60 more

    iPod 40GB = £340 = $612 (actual price $499) > Shafted, over $100 more.





    hey you're lucky!

    e.g. in Germany we pay 349? for the 15 GiByte iPod



    at the moment 349? == $436 !



    Yes that's no mistake: $436, thats roughly 50% more than in the U.S.

    Apple could check the exchange rates at least twice a year.



    my 2 cents
  • Reply 19 of 32
    gongon Posts: 2,437member
    Quote:

    Originally posted by eugen

    e.g. in Germany we pay 349? for the 15 GiByte iPod



    at the moment 349? == $436 !



    Yes that's no mistake: $436, thats roughly 50% more than in the U.S.

    Apple could check the exchange rates at least twice a year.





    I agree that Apple could shaft its Euro-area customers a bit less, but do consider that something like 22% of that 50% is value added tax. Apple "only" takes about 25% more off us than Americans.



    Of course, we earn less and have a higher cost of living. Small wonder I haven't yet seen an iPod outside a store.
  • Reply 20 of 32
    The thing is, if you get paid in Euro and buy in Euro, why do you care so much about the difference in Dollars? This happens all the time.



    You can actually buy more US goods for your Euro right now, if you know how (as my wife pointed out to my during her shopping spree in the States over Christmas).



    Now, in my case, I get paid in dollars and have to buy stuff in Euro. Very, very bad.



    The Fed doesn't care about the dollar right now, so we'll have to live with this for a while.
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