Pricing: Apple Defies Australian Government 440
daria42 writes "This week it was revealed that Apple has still not responded to Australia's Federal Parliament on the issue of why the prices of its products are significantly higher in Australia than they are in the US, five months after the query was first raised by a member of parliament from Australia's governing Labor party. Apple has refused to issue a statement on the matter or even acknowledge the issue. What will it take to get Apple to open up — a national enquiry?"
Amazing what a threat can do (Score:5, Informative)
It's not just apple (Score:2, Informative)
It's not just apple that have significantly higher prices in Australia. I would love to buy an Alienware M17x laptop.
Price in AUD $2499 (inc GST) = $2250 ex GST. Price in the US $1499. Given that the exchange rate is about 1 AUD = 0.97 US the comparison is ridiculous.
The cost difference is about $800, I can fly from Sydney to LA for about a thousand.
It's not just technology either - A Triumph Thunderbird Storm motorbike would be in my garage now if I could get one at a comparable US price. The US one is about ~$15,000, the AUS one ~$22,000.
Levi 501 Jeans, US ~$40, AUD ~$100.
Australians are paying through the nose for most goods. I don't understand why - it can't be more expensive to ship China -> AUS than China -> US.
Sales tax (Score:4, Informative)
And if one product is too expensive, people are free to buy from competitors.
Re:Everything costs more in Australia (Score:4, Informative)
If it makes you feel better, you're not alone in the price gouging stupidity.
2011 Camaro 2SS MSRP:
USA: $34,420
CAN: $42,035 -> Adjusted: $42,437 USD
Difference: $8000
The kicker: The car is assembled in Oshawa, Ontario, Canada.
So don't feel too bad, my upside-down friend. Us stupid Canucks can't even get shit we build in our own backyard for the same price as the Americans.
All hail globalization... or whatever.
Re:Everything costs more in Australia (Score:4, Informative)
In Australia, a 2010 Camaro SS with 2,900km on it is $118,000 (USD=$123,000)
2011 SS starts at $127,500 AUD.
Re:Consumer protection laws? (Score:3, Informative)
IANAL, but this seems pretty cut and dry to me, if an expensive computer "breaks"(even if it is the fault of the user), then the company is responsible for replacing it, even if the original warranty has run out.
This law reads very much like in the UK and I am sorry to say, but you are wrong. If the consumer is responsible for the damage (through misuse or inappropriate use) then the warranty does not hold. The length of protection granted by the law will also vary on exactly what has been bought.
As to costs, that can also vary. The consumer can be responsible for transport and labour. It depends on what was bought and what (if any) history of the dispute.
Finally, it matters not one whit what the manufacturer applies in the way of warranty. The contract is between the consumer and the retailer. In the case of Apple the manufacturer and the retailed are one and the same, this is not always the case.
MP is not PM (Score:5, Informative)
Re:If you don't like it (Score:4, Informative)
You mean like the Galaxy Tab 10.1? It's barred from import into Australia due to Apple successfully winning an injunction against it due to patent disputes.
Until the 1st of September. The hearing is on the 29th of August and Samsung feels so confident of wining they've announced the release for the following Thursday (late night shopping day in Oz). Realistically with the standard of evidence Apple have been presenting, Samsung couldn't win easier if they were represented by Charlie Sheen on Winning Juice.
Re:Canucks & kiwis get price gouged as well. (Score:4, Informative)
This is of course entirely true, and most of us have been simply importing instead (the UK is actually the best value source right now). We can usually save 30-60% by buying online & overseas, even after shipping (bypassing the 10% GST helps too).
The problem with this is the local retailers are put in an impossible position. Their sales drop drastically, but their margins are already thin. All the excess profit on what sales they get go to the local distributor, or more often to the US publisher who sells to the distributor at an inflated price. The retailer could of course buy from overseas retail outlets themselves, import in bulk and still have plenty of room to undercut their peers (and some do), but this jeopardises their relationship with their suppliers (who frequently also sell things the retailer can't import so easily).
Result: sales slide, the local economy suffers, and the publishers usually blame it all on Australians being a bunch of lousy pirates.
Re:Sad part (Score:3, Informative)
You guys should of fed him to a dingo when you had the chance.
Re:Sales tax (Score:4, Informative)
Sure, but VAT is added to the posted sales price, while U.S. sales tax is added afterwards. So, for example, in Australia (with a 10% VAT), an iPad listed for $579 includes $52 in VAT as part of that price, with the base price of the product $526. In the United States, the posted price is $499, but then when you take it to the register they the sales tax--so if you were to buy your iPad in Glendale where sales tax is 8.75%, you get a receipt saying "$499 + 43.66 (tax) = $542.66."
So posted prices in the United States are always significantly lower than posted prices in countries where the VAT is added to the price tag prior to sale, such as Australia or the U.K.
Once you factor out that price, the exchange rate between Australia has fluctuated around 10%--from a low of AUS$0.9843 to AUS$1.105 per US$1. Because Apple tends to want a fixed price (and not adjust prices every time the exchange rate fluctuates) they fixed the price. And apparently it's only been within the last year that the U.S. dollar has been week against the Australian dollar.
If you look at the price difference in the base price of the iPad, the price difference (US$499 verses AUS$526), this suggests the price was set at an exchange rate of AUS$0.9480, which is in-line with historic exchange rates until around September of 2010, when the dollar significantly weakened.
There. I just answered the Australian Government's request for information. Phfffffffft!