Unfair pricing

Posted:
in General Discussion edited January 2014
Hi to all!!



(Sorry for my English in advance)



I just want to point out what I think is an unfair behavior.



Apple is currently selling it's products at almost 1 to 1 Euro-Dollar conversion.

The current Euro-Dollar conversion is 1 to 1,47. I don't spect to have a real time Euro-Dollar conversion in Stores, but not that "you will pay 40% more stupid European".



I'm from Spain and I want to buy a MacBook Pro, but I can only buy it in the Spanish Apple Web Store as the international shipping is not available in the US Apple Web Store, so I'm forced to pay what they want me to pay.

With the price difference between this 2 stores I can buy a plane ticket, got to New York, buy a MacBook Pro and go back to Spain at the same price.



Obviously, doing this, they win much more money selling a Mac in Europe, then hearing things like "Apple Reports Best Quarterly Revenue & Earnings in Apple History" are not strange.



I think this is unfair, Macs are not cheap!!

Why this unfair treatment to European people?

Why I have to pay much more for a Mac than an American guy?

Why not to put an American Flag in the Apple's logo background? :-)



I LOVE Apple and Macs but I just want to complain on that!



Regards,



Cristian

Comments

  • Reply 1 of 12
    MarvinMarvin Posts: 15,172moderator
    Quote:
    Originally Posted by criscoso View Post


    I think this is unfair, Macs are not cheap!!

    Why this unfair treatment to European people?

    Why I have to pay much more for a Mac than an American guy?

    Why not to put an American Flag in the Apple's logo background? :-)



    That should have been Randy Newman's 'song'.



    It sucks, even here in the UK but Apple like to rip international customers off and as long as people keep buying, they're not going to change. Some people talk about taxes and shipping as reasons but it's rubbish, Dell and other manufacturers manage to match or even better their prices in America internationally so Apple have no excuse.



    Australia is hit worst I think. If Apple want some respect internationally, they know what to do. In a way, I'm glad their iphone sales were low in Europe. It's only when their share prices go down or their profits drop that they take a step back and think they might be doing something wrong.
  • Reply 2 of 12
    banchobancho Posts: 1,517member
    Is it really as simple as Apple just being dicks or could there be other reasons?
  • Reply 3 of 12
    mr. hmr. h Posts: 4,870member
    It's not hard to see why Apple's international sales account for only 45% of revenue despite the fact that even just the EMEA (Europe, Middle-east and Africa) market is bigger than the U.S. (measured in terms of GDP).



    Add in Asia as well (where Apple also charge rip-off prices) and it doesn't take a genius to work out why Apple's U.S. market share is around 6%, but it's still only 2.5% world-wide.
  • Reply 4 of 12
    brussellbrussell Posts: 9,812member
    Part of it is that the Euro stores have taxes included, but the US prices do not. But that doesn't account for all of the difference. Steve Jobs has said that "it's more expensive to do business in Europe."



    Maybe, but in the US, the base AppleTV is $229 (or about €150). In the Apple Germany online store, it's €299, or about $450.
  • Reply 5 of 12
    Just to point out some things:



    * US Apple Web Store includes US taxes.



    * Apple manufactures its European computers in Ireland.



    The only reason is that they want to win more money.

    They know the US market rules and the others just follow, so:



    "Keep it cheap in the US and don't care about the rest".
  • Reply 6 of 12
    mr. hmr. h Posts: 4,870member
    Quote:
    Originally Posted by criscoso View Post


    * Apple manufactures its European computers in Ireland.



    Not for a long time now.



    All their computers are assembled in China. Except possibly the Mac Pro; I'm not sure about that one.
  • Reply 7 of 12
    Quote:
    Originally Posted by Marvin View Post


    Australia is hit worst I think. If Apple want some respect internationally, they know what to do. In a way, I'm glad their iphone sales were low in Europe. It's only when their share prices go down or their profits drop that they take a step back and think they might be doing something wrong.



    I sometimes wonder whether what we're seeing is one extra middle man.



    eg:

    Apple cost $x -> Shops $x + 30%

    vs

    Apple cost $x -> Apple Australia $x + 30% -> Shops $x + 30% + 30%



    There'll be extra stages, but you get my drift.... Apple wants to make a good profit while selling to Apple Australia, then Apple Australia needs to make a profit too.

    .... And since Apple owns Apple Australia, they profit twice.
  • Reply 8 of 12
    banchobancho Posts: 1,517member
    Quote:
    Originally Posted by criscoso View Post


    Just to point out some things:



    * US Apple Web Store includes US taxes.



    No they don't. Since taxes vary by state, they don't include that bit in the price until you check out.
  • Reply 9 of 12
    This is the same for EVERY product. There are a few reasons:



    1. Tax. I was in Florida a couple of years ago and was shocked that sales tax (or VAT as we call it) is just 2%! Over here in the UK it's 17.5%!



    2. Labour. As someone said, computers sold in Europe have some parts manufactured in Ireland (as opposed to China) due to certain EU legislation - workers in Ireland get paid A LOT more than those in China due to minimum wage laws.



    3. We will pay more. Entry level macbook in the UK is the equivalent of about $1400 - Americans simply wouldn't pay that amount.



    4. As someone else said there is an extra middle man...
  • Reply 10 of 12
    mr. hmr. h Posts: 4,870member
    Quote:
    Originally Posted by Professor P View Post


    This is the same for EVERY product. There are a few reasons:



    Not by nearly the same degree. As someone said earlier in the thread, check out Dell et. al. and you will notice that they do a much better job on international pricing than Apple does.



    Quote:
    Originally Posted by Professor P View Post


    1. Tax. I was in Florida a couple of years ago and was shocked that sales tax (or VAT as we call it) is just 2%! Over here in the UK it's 17.5%!



    True.



    Quote:
    Originally Posted by Professor P View Post


    2. Labour. As someone said, computers sold in Europe have some parts manufactured in Ireland (as opposed to China) due to certain EU legislation - workers in Ireland get paid A LOT more than those in China due to minimum wage laws.



    And that person was wrong. Which parts do you think are made in Ireland as opposed to China and which EU legislation do you think forces this to happen?



    Quote:
    Originally Posted by Professor P View Post


    3. We will pay more. Entry level macbook in the UK is the equivalent of about $1400 - Americans simply wouldn't pay that amount.



    Except that that isn't true and that's why Apple's market share is so much lower internationally than it is in the U.S.



    Having said that Apple's prices in the U.K. are almost acceptable. It's prices in the rest of Europe and in Asia that are simply taking the piss.
  • Reply 11 of 12
    Okay, let me give you some facts.



    Apple Store Germany



    iPod nano 4 GB ? $220 (Would you have believed that?)

    iPod nano 8 GB ? $294

    Apple TV 40GB ? $443

    iPhone 8 GB ? $591 (Just crazy!)

    iMac 20" 2.0 ? $1,775 (The smallest 20" model for the price of a 24" US model)

    MB Pro 15" 2.2 ? $2,812 (Right, that's the cheapest MacBook Pro!)

    Mac Pro ? $3,700



    Quite enjoyable to read, huh? But it's even better in smaller countries, especially if they don't have an official partnership with Apple but only ship Macs via IMC. Example:



    Apple Store Hungary



    iPod nano 4 GB ? $258

    iPod nano 8 GB ? $344

    Apple TV 40GB ? $484

    iMac 20" 2.0 ? $1,834

    MB Pro 15" 2.2 ? $2,882

    Mac Pro ? $3,274



    It's a crazy thing what Apple does outside America. They provide an overwhelming market share to 6% of the world's population, but if you use or recommend a Mac outside this area you are seen as a new-rich moron with a Ferrari type computer. Thanks to Apple's marketing strategy. There really needs something shocking to occur to Apple to make them stop this trash.
  • Reply 12 of 12
    john.bjohn.b Posts: 2,741member
    I suppose it is unfair at some level. IMO, the AppleTV was discounted (someone over on MacRumors postulates most of Apple Inc's margin is now gone) to subsidize the movie rental biz. Its possible there is no reason to do that in Europe until you guys get a similar movie rental deal. My guess is that the price drop went hand-in-hand with the distribution deal, and that countries with movie rental deals with their individual studio licensing/royalty agencies may eventually see a similar price drop.



    Obviously, pure speculation on my part.
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