5k iMac Pricing

smash

How are they justifying the pricing on these? Got an email this morning saying they're now available in the Irish store bla bla and here's the price difference:

USA: $2,499.00
IRE: €2,699.00

Current exchange rate:

2,499.00 USD = 2,000.99 EUR

draiochtanois

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smash

draiochtanois wrote: »

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Includes VAT of approx. €505.00.*

Still a €200 difference. after VAT.

Graham

smash wrote: »

Includes VAT of approx. €505.00.*

Still a €200 difference. after VAT.

Not a huge difference percentage wise and a slight move in exchange rates could see the difference evaporate completely.

Zcott

What about US sales tax?

DoYouEvenLift

Does apple release updated Mac models annually? Will be interesting to see the difference in prices and specs next model

draiochtanois

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Graham

draiochtanois wrote: »

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It may not be applicable in Ireland but it's definitely relevant when you're comparing a price including tax to a price excluding tax.

draiochtanois

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Frank Lee Midere

Graham wrote: »

It may not be applicable in Ireland but it's definitely relevant when you're comparing a price including tax to a price excluding tax.

The American price is ex-tax. All American sticker prices are pre sales tax. Even in shops.

Graham

Frank Lee Midere wrote: »

The American price is ex-tax. All American sticker prices are pre sales tax. Even in shops.

Correct

Graham

DoYouEvenLift wrote: »

Does apple release updated Mac models annually? Will be interesting to see the difference in prices and specs next model

On average the iMac is refreshed every 342 days, obviously no track record to follow for a Retina iMac yet.

Doodah7

Sales taxes and surcharges vary by state from 0% up to c. 11%. If you took an average of say 9%, then a retina iMac costs $2723.91, which at today's prevailing rate that would be charged to your credit card is c. €2228.

A big difference...

Graham

tallpaul wrote: »

Sales taxes and surcharges vary by state from 0% up to c. 11%. If you took an average of say 9%, then a retina iMac costs $2723.91, which at today's prevailing rate that would be charged to your credit card is c. €2228.

A big difference...

As you can't legally buy in the US and import to Ireland without paying tax, a more realistic comparison would be the pre-tax price here and in the US.

€2194 Ireland (ex VAT)
€2022 US ($2499 Ex Sales tax, at todays AIB sell rate 1.2354)
€172 Difference or about 8% more to buy in Ireland.

Doodah7

Graham wrote: »

As you can't legally buy in the US and import to Ireland without paying tax, a more realistic comparison would be the pre-tax price here and in the US.

€2194 Ireland (ex VAT)
€2022 US ($2499 Ex Sales tax, at todays AIB sell rate 1.2354)
€172 Difference or about 8% more to buy in Ireland.

No I am not arguing about legally importing a machine into Ireland.

The point is that if I walk into an Apple Store in the US this morning, I will pay roughly $2725 including taxes, depending on the state I live in, which is equivalent to €2230 give or take. If I walk into CompuB in Ireland and buy an identical machine made in the same factory, I will pay €2699. An American customer pays €450 less for the same machine.

Remember it is Apple that set their prices and their pricing will of course take relevant taxes into account when setting those prices. They could easily have a price of €2299 which would be broadly the $2725 that it costs in the States. But they don't.

Graham

tallpaul wrote: »

No I am not arguing about legally importing a machine into Ireland.

The point is that if I walk into an Apple Store in the US this morning, I will pay roughly $2725 including taxes, depending on the state I live in, which is equivalent to €2230 give or take. If I walk into CompuB in Ireland and buy an identical machine made in the same factory, I will pay €2699. An American customer pays €450 less for the same machine.

Remember it is Apple that set their prices and their pricing will of course take relevant taxes into account when setting those prices. They could easily have a price of €2299 which would be broadly the $2725 that it costs in the States. But they don't.

I didn't suggest you were 'arguing about legally importing' anything, I merely pointed out it was an unrealistic comparison.

As you rightly point out, Apple are free to set their pricing policies as they choose. Recent history suggests the Apple EU price is usually a few percent above the US pre-tax price which is usually explained away as the difference in the costs of doing business in the different markets.

Senecio

tallpaul wrote: »

They could easily have a price of €2299 which would be broadly the $2725 that it costs in the States. But they don't.

Why would they absorb the VAT in Ireland effectively lowering their margins?

flexcon

There is a €182 euro difference in price between the Us and Ireland.

End off.

That is normal in every product, I agree Ireland pays higher price, but then again like most companies you charge more according to local markets and cost of doing business as well as exchange rates.

banquo

Every single year:

Mostly VAT.