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

2

Comments

  • Reply 21 of 47
    As someone who spends most of their time in both Canada and Australia, Apple goods have had multiple price rises over the last while in those countries to cover the falling $'s. I was  bummed that when I went to buy my iPhone 6, which had been out for a few months at that point, they had raised the price by $120 two days before. 
  • Reply 22 of 47
    Haha 

    Way to go Apple. As if you weren't insulting us enough with charging people top money for three year old kit.

    Probably the biggest jerk middle finger move you've done.

    Just scrap the Mac Pro and Mac Mini and stop playing at making computers
  • Reply 23 of 47
    darkpawdarkpaw Posts: 130member
    Some people I know who work in an app-making company are pissed off that the Mac Pro, which hasn't been updated in nearly three years, and is using three-year-old technology, is now £500 more expensive across the board. This Mac should've had a price cut in the last year or two.

    Brexit has affected the exchange rate, yes, but for Apple to increase prices like this just smacks of profiteering. There is no way it costs Apple (in lost profit) an extra £500 to sell a Mac Pro in the UK than it does to sell it in the US, or France, or Germany.

    They added £20 to the cost of an Apple Pencil just a few weeks ago, taking it from £79 to £99. Were they really losing that much money on the Pencil?

    By all means, Apple should protect their income, but hiking prices like this is definitely going to affect them. I'm quite interested in the new MBP, but not at those prices. I'll hang on until they're cheaper, And if I'm doing that, you can rest assured I'm not the only one. Those guys at the app company I know, are likely to hold off buying these new MBPs, too.

    The one plus I can see from this, is that I can sell my Mac Pro for slightly more now :)
    asdasd
  • Reply 24 of 47
    MacProMacPro Posts: 18,359member
    sflagel said:
    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.
    Forgive me if I am misinformed.  I was lead to believe, reading the accounts this side of the pond, that many Stayer's assumed it was a slam dunk and didn't bother voting.  That is by definition complacency.  So what really happened?
    argonautwilliamlondon
  • Reply 25 of 47
    MacProMacPro Posts: 18,359member

    crowley said:

    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.
    You sure like partial quotes to make your points don't you.  ;)  I will let the full text from above speak for itself.  
    williamlondon
  • Reply 26 of 47
    MacProMacPro Posts: 18,359member

    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 $.
    Or if you actualy stop and think for a moment  ... Apple did eat the difference for a long time but eventually the exchange rate effect had to kick in.  You should be grateful.  I wish my various pension plans had eaten the exchange rate for a long time too, sadly they effect my deposits instantly.
    edited October 2016 argonautwilliamlondon
  • Reply 27 of 47
    sflagelsflagel Posts: 593member
    sflagel said:
    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.
    Forgive me if I am misinformed.  I was lead to believe, reading the accounts this side of the pond, that many Stayer's assumed it was a slam dunk and didn't bother voting.  That is by definition complacency.  So what really happened?
    I am sorry I started a political discussion. But it turned out that voter participation was actually quite high. It was clear that Leavers would be more incentivised to vote, and that old people (who I have lost all respect for since Brexit and Trump); in the end the young and the Remainers had a higher representation than anticipated (https://www.theguardian.com/politics/2016/jul/09/young-people-referendum-turnout-brexit-twice-as-high)
  • Reply 28 of 47
    shevshev Posts: 81member
    It's not really a big deal, all the endless forum contributions and comments I've read have all given Apple the middle finger, including a lot of very loyal Mac fans. They have adjusted the price based on the exchange rate - good for them, keep the profit margins at 39%. I mean it's going to suck getting 39% of nothing for the next year on most product lines but Apple know best.
    scartart
  • Reply 29 of 47
    sflagelsflagel Posts: 593member

    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 $.
    Or if you actualy stop and think for a moment  ... Apple did eat the difference for a long time but eventually the exchange rate effect had to kick in.  You should be grateful.  I wish my various pension plans had eaten the exchange rate for a long time too, sadly they effect my deposits instantly.
    But in the end, it is a Cook way of protecting the margin, at the expense of total revenues (he can quote reduced demand in UK due to Brexit). Apple is managed by a COO and CFO now. Accept the inevitable truth.
  • Reply 30 of 47
    Blaming Brexit for the USD to GBP exchange rate fall is just a cheap shot. In reality the pound has been falling for months, if not years, due to the weakest of the overall European economy. What Brexit has done is just accelerate the fall but the end result would probably be the same.

    As things stand the European economic isn't too healthy, and in uncertain times the USD rises as it is seen as a safe haven. Some manufacturers will assess the situation and accept a reduced margin on their products in Europe to maintain sales, market share, and pull through revenue of additional items (dongles in Apple's case). Unfortunately Apple don't take that view and so have passed on all the additional costs to their customers.
    tallest skil
  • Reply 31 of 47
    1. A few days ago it was revealed that the UK economy did rather well over the period since the Brexit vote - much to the annoyance of many who voted in support of the EU administration who seem to be hoping to leap onto doom and gloom stories for "I told you so" opportunities. Remainers should accept that the EU is a risk too! http://www.bbc.co.uk/news/business-37518096

    2. The Sterling exchange rate slid heavily between the middle of 2014 and the start of 2015, which had nothing to do with the Brexit vote. 

    3. Sterling rose against the Euro during 2013 to 2014 making our exports relatively more expensive and thus, to a degree, stymieing British exports. Where was all the complaining then? Oh yeah, British foreign holidays were cheaper, maybe that's why. 

    4. The UK has had a huge trade deficit with the rest of the world for a very long time, as such, a Sterling slide is economically understandable, regardless of the Brexit vote.
    http://www.conservativehome.com/to-the-point/2015/09/the-balance-of-trade-is-one-britains-biggest-imbalances.html

    5. Exchange rate fluctuations are always double-edged. Britain is now significantly cheaper to visit than it was last year, and relative to the rest of the world, British labour and indigenous produce is also cheaper, therebye, all else being equal, putting upward pressure on the demand for British labour and indigenous produce - which is a good thing! And UK steel is now much cheaper relative to that from the Chinese - wasn't the country up in arms a short wile ago about the Steel industry's survival?  

    6. Brits should have Staycations, the UK is a gorgeous country, try Pembrokeshire beaches and the rolling hills and valleys of Mid Wales - and then there's Cumberland, Scotland and many other places too. Oh, and bring a brolly!  ;-) 

    7. Apple's 20% price hikes pass the entire exchange rate movement on to the Customer. I reckon Apple will see just how elastic demand is for their products and sales will fall proportionally. I have a 2008 unibody MBPro into which I've recently added an SSD and it is like a new machine in terms of performance. Buying a MBP with 'Touch Bar' would probably cause my productivity to plummet, given its gadget-like nature. And I've just bought a MBAir 11" (2014?) for £440 for my wife - Ok, me too!  ;-)   -,  and it runs like a dream. 
    aderuttertallest skil
  • Reply 32 of 47
    sflagelsflagel Posts: 593member
    scartart said:
    Blaming Brexit for the USD to GBP exchange rate fall is just a cheap shot. In reality the pound has been falling for months, if not years, due to the weakest of the overall European economy. What Brexit has done is just accelerate the fall but the end result would probably be the same.

    As things stand the European economic isn't too healthy, and in uncertain times the USD rises as it is seen as a safe haven. Some manufacturers will assess the situation and accept a reduced margin on their products in Europe to maintain sales, market share, and pull through revenue of additional items (dongles in Apple's case). Unfortunately Apple don't take that view and so have passed on all the additional costs to their customers.
    So ein Quatsch. Sterling took a pounding on the day of the vote and another one when May inferred a hard Brexit. there is no other explanation. Just ask the people that caused the fall: the FX traders across the world, and economic uncertainty due to Brexit is what they cite. You can believe them. It is the FX traders in the FX markets that decide the value of Sterling, and they sold GBP because of Brexit. Anything else you may read anywhere is just made up.
    argonautsingularity
  • Reply 33 of 47
    sflagelsflagel Posts: 593member
    pembroke said:
    1. A few days ago it was revealed that the UK economy did rather well over the period since the Brexit vote - much to the annoyance of many who voted in support of the EU administration who seem to be hoping to leap onto doom and gloom stories for "I told you so" opportunities. Remainers should accept that the EU is a risk too! http://www.bbc.co.uk/news/business-37518096

    2. The Sterling exchange rate slid heavily between the middle of 2014 and the start of 2015, which had nothing to do with the Brexit vote. 

    3. Sterling rose against the Euro during 2013 to 2014 making our exports relatively more expensive and thus, to a degree, stymieing British exports. Where was all the complaining then? Oh yeah, British foreign holidays were cheaper, maybe that's why. 

    4. The UK has had a huge trade deficit with the rest of the world for a very long time, as such, a Sterling slide is economically understandable, regardless of the Brexit vote.
    http://www.conservativehome.com/to-the-point/2015/09/the-balance-of-trade-is-one-britains-biggest-imbalances.html

    5. Exchange rate fluctuations are always double-edged. Britain is now significantly cheaper to visit than it was last year, and relative to the rest of the world, British labour and indigenous produce is also cheaper, therebye, all else being equal, putting upward pressure on the demand for British labour and indigenous produce - which is a good thing! And UK steel is now much cheaper relative to that from the Chinese - wasn't the country up in arms a short wile ago about the Steel industry's survival?  

    6. Brits should have Staycations, the UK is a gorgeous country, try Pembrokeshire beaches and the rolling hills and valleys of Mid Wales - and then there's Cumberland, Scotland and many other places too. Oh, and bring a brolly!  ;-) 

    7. Apple's 20% price hikes pass the entire exchange rate movement on to the Customer. I reckon Apple will see just how elastic demand is for their products and sales will fall proportionally. I have a 2008 unibody MBPro into which I've recently added an SSD and it is like a new machine in terms of performance. Buying a MBP with 'Touch Bar' would probably cause my productivity to plummet, given its gadget-like nature. And I've just bought a MBAir 11" (2014?) for £440 for my wife - Ok, me too!  ;-)   -,  and it runs like a dream. 
    In Economics, nothing is simple, in truth, it is so complicated that even the most sophisticated financial models run on supercomputers get it wrong. but one thing is very easy: if your money is worth less today than it was yesterday, your people are earning less compared to the rest of the world. If you are a country that already has a low livings standard AND high unemployment/underemployment, then you can use cheap labour to increase employment. If you want yur people to play with the big boys at the table, being the servant is not the way to do it.

    Of course, we can all do staycations, and not buy Macs, and eat fewer exotic fruits, and drive Nissan's instead of Mercedes, and shun all those foreign delicacies in our super markets. But THAT IS WHAT POVERTY IS! It is, literally, the definition of that word: not being able to afford things.

    GBP/USD drop was purely due to Brexit. At the beginning of 2015, you had a relative USD strength (it rose against both GBP and EUR). This summer, you had a GBP weakness, Very different things. Here .I already made two pictures earlier today:

    USD/EUR: (See USD strength in Q1 2015 versus EUR and GBP?)






    GBP/USD (See how the slope changes in June, it is reasonably obvious even to the untrained eye?)

    argonaut
  • Reply 34 of 47
    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.
    Since Britain will no longer be bound by EU rules, they really should go the route Ireland took to reduce taxes and also sweep away regulations and end the stranglehold labor has over the country in order to attract businesses from all over the world. Experiment with Free Economic Zones (which have worked in China). Time for them to take risks again and shake up the old thinking.
    edited October 2016 tallest skil
  • Reply 35 of 47
    crowleycrowley Posts: 5,997member

    crowley said:

    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.
    You sure like partial quotes to make your points don't you.  ;)  I will let the full text from above speak for itself.  
    I don't understand.  I responded to your post, then realised you had edited a second paragraph to your post, so I responded to that as well.  What's partial about that, they were two different points?

    I am not suggesting anyone absorb the exchange rate, I've never suggested that.  I am suggesting the exact opposite, that no one is saying that they deserve compensation for Apple raising their prices, which is what you insinuated, and continue to insinuate with your redundant pension example.  

    Some people are a bit unhappy about price rises, but why shouldn't they be?  Price rises mean we pay more. Are you happy to pay more?  It matters not a jot to people if it's the exchange rate that is the underlying cause of the price rise, individual people are not responsible for the excahnge rate, and people who voted against EU exit have a particular reason to feel aggreived.

    But no, everyone everywhere should stop "whining" about everything, right?
    singularity
  • Reply 36 of 47
    darkpaw said:
    Some people I know who work in an app-making company are pissed off that the Mac Pro, which hasn't been updated in nearly three years, and is using three-year-old technology, is now £500 more expensive across the board. This Mac should've had a price cut in the last year or two.

    Brexit has affected the exchange rate, yes, but for Apple to increase prices like this just smacks of profiteering. There is no way it costs Apple (in lost profit) an extra £500 to sell a Mac Pro in the UK than it does to sell it in the US, or France, or Germany.

    They added £20 to the cost of an Apple Pencil just a few weeks ago, taking it from £79 to £99. Were they really losing that much money on the Pencil?

    By all means, Apple should protect their income, but hiking prices like this is definitely going to affect them. I'm quite interested in the new MBP, but not at those prices. I'll hang on until they're cheaper, And if I'm doing that, you can rest assured I'm not the only one. Those guys at the app company I know, are likely to hold off buying these new MBPs, too.

    The one plus I can see from this, is that I can sell my Mac Pro for slightly more now :)
    It's not profiteering, they're responding a devalued £.
  • Reply 37 of 47
    crowleycrowley Posts: 5,997member
    Out of interest, when Apple pay app developers for international sales of their app in their local currency, what exchange rate do they use?  The current one at the time of a payment, or normalised across the period or what?
  • Reply 38 of 47
    "...and people who voted against EU exit have a particular reason to feel aggrieved"
    > yes, that particular reason being that more people voted for the other option! 

    Given the UK's vote Leave result, of those who voted, fewer people are aggrieved than those who are not aggrieved. Isn't that the 'right' result? Of course if Remain had won, millions of others would have been aggrieved, but that's a referendum for you. It creates many unhappy people either way - who knew? ;-)

    Crack on, UK. There are many millions in other EU countries who would like the chance to vote to leave the EU in its current incarnation. Given the chance, millions in other countries would vote leave as well. Cosy Political establishment mandarins in other EU countries won't dare give their people a plebiscite. 

    The UK will be outside the Euro Free Market but will end up with an agreement(s) that is effectively pretty well the same - as the UK buys far more from Europe than it sells to Europe. 

    The EU has to come to terms with the fact that there are very good reasons why the UK, by and large, expressed its non-confidence and hopefully shock it into following a more pragmatic road. This is not to say that EU has been bereft of some useful initiatives. 

    The UK is departing a political arrangement, it's not departing from Europe in terms of trading, travel and supporting it in most matters. 
    --------

    The extent of Apple's price hikes are upsetting - for those in the market. It's a public relations blow, regardless of merit, let's hope Apple shows the same alacrity in changing prices when the exchange rate moves the other way. Don't anyone hold their breathe. 
    asdasdaderutter
  • Reply 39 of 47
    asdasdasdasd Posts: 5,312member
    sflagel 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 $.
    Or if you actualy stop and think for a moment  ... Apple did eat the difference for a long time but eventually the exchange rate effect had to kick in.  You should be grateful.  I wish my various pension plans had eaten the exchange rate for a long time too, sadly they effect my deposits instantly.
    But in the end, it is a Cook way of protecting the margin, at the expense of total revenues (he can quote reduced demand in UK due to Brexit). Apple is managed by a COO and CFO now. Accept the inevitable truth.
    Very much bean counting indeed. For something to not get updated for 3 years and then get a price rise.  Sales will be zero. M

    and yeh Apple should take the hit on the margins. Remember the strong dollar helps them with their American profits. Their expenses are often in Yen. I've never seen Apple increase prices in dollars if it's weak.  
    aderutter
  • Reply 40 of 47
    I was hoping to replace my old Mac mini and come back to iPhone from android next year. If these prices remain I will be sticking with android and getting a new windows PC. I really love Apple products but there is a limit to how much I am going to pay for them over the competition. 
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