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Why Is Apple Australia So Expensive?

Because they can be.

On the eve of opening the first Apple store in Australia, Stephen Hutcheon asks why Australians pays so much for Apple products.
Apple replies that their price is right.

Despite there being near parity in the $US-$A exchange rates since the start of the year, many Apple products in Australia - including iPods, MacBooks and iMac computers - sell for between 15 and 30-plus per cent more than they do in the US...

The index shows that Australia is the eighth cheapest place in the world to buy an iPod nano, but the US ranks as the second cheapest.

In a random sample of Apple products surveyed, we found one of the smallest products - a set of iPod earphones made in China - had one of the biggest price differences.

In the US, a set of these white headphones sells for $US29. That translates to $31, based on an exchange rate of 94 cents to $US1.

But in Australia, Apple sells the same headphones for $48 - a price difference of more than one-third, or 35 per cent to be exact.

I guess they have to pay for their $13 million glass box somehow.
Australian consumers don't question it, meanwhile corporations like Apple maximise exchange rates hourly and spend fortunes on price tolerance research.

Update: Peter Murphy's fantastic Panorama of the store opening.
View in QuickTime or Flash

Apple Sydney Store Image

9 comments

Comment by Gary on 20 June 08 @ 22:06
WOW! What a loveley looking store, the floors from here, the glass is from there and the stainless steel from somewehere else, great but we actually want to look at the goods and have them cheaper and we really don't care about the floor and what its made from ;) Classy looking bulding though don't you think?

Gz
Comment by John Email on 20 June 08 @ 23:29
The building is a statement, that's for sure.
But we have an online trader we buy our Mac's from and he's always cheaper, faster and has a full warranty service.
Sure beats going to the Glass House :)
Comment by Peter Murphy on 21 June 08 @ 16:13
Check out the opening night in a 360 panorama --
(Quicktime) or (Flash)
Comment by John Email on 21 June 08 @ 18:11
Nice work Peter... I'll link to it via the post.
Comment by Gary on 21 June 08 @ 23:43
My Gosh ! That's a lot of people waiting to go in. That 360 shot is awesome, love it.

Gz
Comment by Miles on 30 June 08 @ 04:08
You think you have it bad, in Canada we are zero miles away from the US and pay the same kind of mark-up you do on just about everything despite, like you, the Canuck dollar being close to parity with the US.

Although I have to say Apple itself are one of the few companies that do charge about the same in the US and Canada, or in some cases less. I bought a friend an ipod touch in Toronto from a chain store for $350, the same ipod in the same chain in the US is $400.
Comment by John Email on 30 June 08 @ 04:48
I'm looking forward to the price tag they will hang on an iPhone in Aus.
Comment by Patrick on 25 July 08 @ 01:48
What is even more intolerable is the fact that you
pay here in aus $629 for a 32gb Itouch and then you
have to pay for a software update. Dont get me wrong
i like apple but its about time consumers voted with
their wallets, well credit cards. dont buy it and
see the price come down. shareholders want people
to buy thats how they make their money.
Comment by Damon Perucich on 21 November 08 @ 01:32
Apple cannot justify their proces, even when the Australian dollar was trading near a ration of 1:1 with the US dollar. Just don't buy them, I certainly will not until it goes down 50 percent in price. Power to the people. You are an idiot if you purchase one before mid to late 2009.

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