I’ve been looking into the potential of switch to a Mac over the last couple of days, what I don’t get is this:
The Apple Store (Australia) – Mac Pro
vs
The Apple Store (U.S.) – Mac Pro
WTF?!?!
Using xe.com (conversion rate of 83c), the same Mac sold in the US is $3,002 AUD. So why does Apple sell it for $3,999, 33% higher? even if we allow for 10% GST it still only brings it to $3,300, not $4k.
At $3k it’s reasonable buying, at $4k it’s not.
It’s the same across the board.
A Refurbished Mac Pro Quad 2.66GHz Intel Xeon:
US: $2199 USD/ $2640 AUD Australia: $3359 AUD/ $2796 USD
Does anyone know how to import them into Australia directly from the States or can recommend a company that does ship them here? Even with customs duty they’d still work out cheaper.
Not sure Duncan.
But be careful about importing yourself. That could (I’m not saying will) void the warranty. I know some computer manufactures have issues when they don’t control the world-wide shipping because then they can’t guarantee the quality of couriers, etc.
Apple has worldwide warranty on mobile equipment, and I think AppleCare has global repair coverage. Duncan, we’ve been asking the same question about the Middle East for a long time, and I’m not sure anyone has fully explained it.
Apple does it because they can 😉
Another reason is due to the exchange rate taking them by surprise. I *think*, it’s because they’re purchased stock at the old exchange rate and are selling it at the price they bought it for. No-one really knows – everyone at Apple who has the knowledge to answer won’t, hah
If you do plan on buying it from the US, check out B&H Photo (http://www.bhphoto.com). Lots of Aussies by camera gear worth around the same from them (as the same thing happens to camera gear here in Australia, like the Mac Pro), so they’re used to the whole shipping to overseas thing.
At $4k I reckon that’s good value! Have you tried spec’ing a Dell to the same level?? If you don’t go insane with the Dell website AND you can do it for less than the mac, I’ll eat my shorts!
Re importing, yeah Apple will fix it on global warranty – IF – they accept a fault as warrantable. If they don’t, and you want to pursue them another way (eg small claims/civil tribunal), you won’t be able to pursue that unless you’ve purchased in Australia – I’ve been there. And Apple Australia are an ineffectual bunch of !@#@, don’t ever expect them to help out unless you really push it …
I’ve wondered about that also.
How much would the differing power supply cost extra if needed, or is it just the plug(240V in Oz)? All I do know is Apple Australia gets ‘it’s cut’ and decide on ridiculous prices based on price points.
AU$3300… nah, AU$3999 sounds better. lol.
Obviously, we do have to allow for GST.
The real cost is actually slightly more than the exchange rate, due to exchange fees, and the Australian retail market is much smaller than the US market, so maybe we have less economies of scale, but it still seems an excessive difference.
Have you checked out the US and Australian prices of other brands? Perhaps this gap is true of other manufacturers too, I don’t know.
Mikhailovitch
I’ve allowed for the GST, and ignored any taxes that may be included in the US price. The price of PC in Australia and the US, apples and apples is pretty close, and Apples all comes from China anyway, the shipping would actually be less to get them here than the US.
Lokkison
Given they’re all Intel chips now I’d be guessing that it would simply be a matter of flicking a switch on the power box, certainly older PC’s use to have that feature built in (and presuming they still do), if not a standard power supply wouldn’t be overly expensive I’d think.
Simon
Still bet I’d get a Dell cheaper with those specs 🙂
Macs are 4 to 5% more expensive in Canada than the USA. Our iTunes downloads are about 8% cheaper than the USA.
Go figure.
You started out being a bit sensationalist and then answered your question. Taxes are not included in the US. I am sure that no importer would use $.83 as their exchange rate. That is at the top end of the normal range. Most imported goods are priced with a similar margin. I think you knew all of this. It is frustrating.
The only thing you need for the power supply is the little plug adapter.
If you but a machine overseas and take it through customs at the airport they ask you if you have used the machine. If you have, they reduce the taxes. You also get to subtract the import allowance that everyone gets when returning from overseas. As a result, the GST will be dramatically reduced.
GST is not sufficient to explain the difference in prices. Looking at my numbers there is still around a 17 per cent difference between the implied and actual exchange rates after GST is removed.
I can’t find a satisfactory explanation for this other than that Apple are profit-gouging because they can — they control the supply.
You could try a website like worldpurchases.com. They ship products from U.s. stores to Australia.
Duncan: WTF indeed.
I was scouting out prices for the 17in MBPro in the region.
Here are a list of US equivalent prices as of today’s forex, INCLUDING tax:
usa: 3033
taiwan: 3118
malaysia: 3226
japan:3344
singapore: 3387
AUSTRALIA: 3671 !!!!!
More expensive that Japan even! That just blows my mind. If you view details on the Apple store websites specific to country, it shows you a breakdown for ex-GST and post-GST prices. e. g.
Taiwan: 2970+148=3118
Australia: 3337+334=3671
In the US, list price is 2799. For the figure above I used NYC tax which comes to 234.
Just looking at these three, there is no specific pattern for GST, as expected. But what’s up with the ex-GST prices?
Thus even discounting the high Aussie tax still doesn’t explain the exorbitant (almost criminal) price. Considering the weak dollar plus the prices in other countries in the region (more than $500 cheaper in Taiwan), this just becomes even more mind-boggling. The only thing I can think of is shipping, with it being cheapest to Taiwan, then increasing in Malaysia then Singapore. Even so, as you mentioned, shipping to Australia is cheaper than to the US — but then again, as with many other products, the US ships volumes more to and from China, Japan etc. than does Australia, which might push the price per ton down.
Long story short, I spending my $500 on a Jetstar to Taiwan this holiday, and still have money left over for that new nVidia I’ve been eyeing.
I have lived in New york for over 10 years, came back to Aus last year and found that my country has been taken over by gangsters…I can buy a 4 storey building in Manhattan less than a home on the central coast of NSW. So the price of a Mac here just reflects the our ‘penal’ heritage…for example, a bagel in Terrigal costs $9.50. A bagel on the Upper Westside of Manhattan costs about 95cents!
Hi!
US price
US to AUD hedged conversion rate*
shipping cost from China to AU
customs import duty for computers 10-15%
GST inclusive of customs duty
AU price = US + exch price*hedged price + shipping + customs + GST
* most international companies that deal with localized subsidiary use a hedged conversion rate that’s set for the entire year
i.e. if $0.6 AUD = $1 USD at Jan 1st 2007
and AUD is expected to rise against the USD then they might hedge
the exchange rate at $0.75 AUD = $1 USD and use this exchange rate for the rest of the year until re-evaluation at Jan 1st 2008
this hedged rate will stay the same even if, say in Aug 2007 the exchange rate is $ 0.94 = $1 USD
airlines use this method to hedge against fluctuating fuel costs.
if you want to buy from the US for dirt cheap use http://www.youronlinegenie.com they sent my iphone any my sons ipod and we’ve had zero probs!!
It might be a tariff that Aus. puts on American products, therfore forcing Apple to raise prices to level the margin of profit in Aus. I don't know, though, it's just a theory.
I doubt it's a tariff.
I've just come back from living in the States for just over a year. I was born and bred Aussie though.
Let me tell you, this is completely across the board. Electronics, food, clothes, petrol!
Sometimes it's just ridiculous how expensive the markups are.
In my mind the factors which cause it are,
1. Exchange rates, 2. Shipping Costs, 3. Less Volume of products, 4. Much less competition.
As a educated consumer, which you obviously now are – Buy from the States and have it shipped, we will continuously get ripped off here which is a big shame.
I doubt it's a tariff.
I've just come back from living in the States for just over a year. I was born and bred Aussie though.
Let me tell you, this is completely across the board. Electronics, food, clothes, petrol!
Sometimes it's just ridiculous how expensive the markups are.
In my mind the factors which cause it are,
1. Exchange rates, 2. Shipping Costs, 3. Less Volume of products, 4. Much less competition.
As a educated consumer, which you obviously now are – Buy from the States and have it shipped, we will continuously get ripped off here which is a big shame.
I doubt it's a tariff.
I've just come back from living in the States for just over a year. I was born and bred Aussie though.
Let me tell you, this is completely across the board. Electronics, food, clothes, petrol!
Sometimes it's just ridiculous how expensive the markups are.
In my mind the factors which cause it are,
1. Exchange rates, 2. Shipping Costs, 3. Less Volume of products, 4. Much less competition.
As a educated consumer, which you obviously now are – Buy from the States and have it shipped, we will continuously get ripped off here which is a big shame.