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$716.315 (aka ?509). We also know why Reuters tries to feed you misinformation: our PM -- in a moment of total mental bewilderment -- once declared that Greece wants to be the Denmark of the Mediterranean, and the (great) Danes have been after us ever since. This is just one more of their ploys.
We're quite lucky in Switzerland as we don't get the crazy prices people have in Europe... The iPad 2 starts at "only" 549CHF ? which is around 595-600$US.
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.
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?
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 ;-)
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).
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.
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.
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.
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.
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...
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..
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.
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.
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.
Yes, and no. Because apart from taxes, there are also differences in regulation that potentially cost Apple money. For instance, buying extended warranty in The Netherlands (e.g. Apple Care) is pretty useless as you are already covered by law for defective products depending on a normal lifetime of a product (something sellers try to hush up or deny generally, so most people are unaware).
Comments
Brazil: the most expensive place to buy any Apple product in the world.
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?
Only in France
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.
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?
The price is ?509 for the entry model, 16GB, wifi only, converted to US$716.315 at today's rate.
Right, so you spend euros, not dollars. As I thought. The conversion to dollars is meaningless since you don't earn or spend dollars in Greece.
Anyway, the end user must put down the full 702$ so a shopping trip to New York would be nice.
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).
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.
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.
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.
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>
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..
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.
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.
Yes, and no. Because apart from taxes, there are also differences in regulation that potentially cost Apple money. For instance, buying extended warranty in The Netherlands (e.g. Apple Care) is pretty useless as you are already covered by law for defective products depending on a normal lifetime of a product (something sellers try to hush up or deny generally, so most people are unaware).