It has always been a joke. Now it just ain't funny anymore.
At announcement (Sept 2021), the 9th gen was $329 US, which was €280 (at the time). Plus +23% VAT gives us €345.22. The actual retail price was €399 - 15.5% higher?
At announcement, the 10th gen is $449 US, which is €459. Plus +23% VAT gives us $564.75. The actual retail price is €599 - 6.5% higher.
The hike is the increase in the base price, plus the exchange rate, plus the accompanying tax. We're actually closer to parity on this release than the last release.
(Also - you must admit rounding 399 to 300 is rather disingenuous.)
It's still $329 in the US, which is €336 here, or €413 after tax. So it's 9% higher than parity - better than it was (at release), but not as close as the 10th gen is.
What I tend to see in apple's european pricing is three (well, 2.5) things. One is that they're ridiculously hooked on round numbers. 413 is never going to be 413 on the sticker. And two, is that it's very rare that they change the sticker price after it's released. (Sounds silly when they've just bumped the 9th gen & ipad mini, but I'm genuinely struggling to think of any prior examples).
So the .5 is that this means their prices include what's essentially a gamble on the currency. It doesn't just reflect where the rate is now, it reflects where they think it's going. This time last week, we were paying less dollars for the 9th gen than the US was - and they've taken the unusual step of actually correcting for that. In short, the house always wins.
I just don't buy the theory that the increase is a punishment for the EU's decision on usb cables etc. The EU and US prices are aligned within roughly the same margin they're usually aligned by. It seems people don't realise how quickly a 20-something% shift in currency and a 20-something% tax rate add up (on top of the increase on the US price), and they'd rather grasp at theories than calculators.
Also, when it comes to a market, typically sellers have to adjust pricing to market conditions or they move categories. 340EUR is already cost for a premium Android tablet and iPad just started at that price.
A few years ago someone made a website showing it being cheaper to fly somewhere to buy an Apple product and still save money despite also paying for the airline ticket.
I will say one thing, even in the US - buying from Apple is rarely the best option. Other sellers (Amazon.com or electronics stores) generally have better prices.
This makes sense if you think about it. If Amazon.com has a 10% off deal relative to Apple.com, people would hit the buy button immediately. Amazon gets a cut, and Apple adds a user.
If Apple also has the same 10% off deal, it is no longer as attractive of an offer and would reduce conversion rates. People might try to search if anywhere else has a better price, etc, and get distracted by other things.
The Facebook movie was really spot on with the "A million dollars isn't cool. You know what's cool? A billion" line
It's the best system among all the bad systems out there.
It talks about the fact that progress isn't linear and that societies don't inevitably become more hierarchical, and I agree that seems right. In fact I could argue that capitalism is precisely an example of societies becoming more decentralised as Europe moved away from feudal and state monopoly systems, and individual financial, association, labour and property rights became established. At the same time monarchic and imperial systems gave way to democratic forms of government, with a few autocratic bumps along the road.
So to me liberal democratic capitalism is much more similar to the egalitarian societies encountered by European imperialists than it is to those imperial systems of the time. The only difference is that technological advances in transport, communication and the management of complexity have massively scaled up economic activity and the benefits that flow from it.
But then from what I can Tell Mark Fisher denied that there is such a thing as an economy. I'm not sure I rally get what he meant. anyway thanks for the references.
mark fisher doesn't deny economy, he takes a materialist perspective on it. his book 'capitalist realism' is probably a good starting point (i've only read his other works, that one is supposed to be a concise read of his thesis)
cheers for taking the time to broaden your perspective
Worth keeping in mind. They're quite able to wind down business in Europe if the alternative is being forced to build their devices in a way they don't want.
Raising prices to match the extra cost of doing business in Europe is a no-brainer. If that means it's no longer profitable to sell to the subcontinent, no problem, they'll just... stop doing that.
This assumes Apple's management has the stomach for the resulting negative revenue growth and the subsequent reaction from Wall Street.
Also, a huge chunk of their cash offshoring / tax minimization strategy is based in Europe: they'd revert to USB-A charging ports if the choice was between that and shutting down the Irish office.
And the MEA is peanuts compared to the first E when you think about money available to spend.
It says right there, in every single one of Apple's quarterly and annual reports:
> Europe includes European countries, as well as India, the Middle East and Africa
Apple's cost of business in europe is also going up from fines and requirements to e.g. migrate charging. so it's not surprising that is passed through to european customers.
also there are plenty of good substitutes and Apple has always been more of a premium brand so i don't think the "financial vulnerability" argument holds water here.