Mac mini pricing angers EU users
p2pnet.net News:- Vive la différence?
Not.
European Apple enthusiasts, angry because of price differences between the $500 Mac G4 in the US and in the European Union, have started an online petition.
Isn’t there something about Apple being investigated by the EU for over-charging for iTunes in Europe?
Anyway, “This is a long outstanding issue and a considerable cause for irritation within the European Mac Community,” writes Loek Jehee. “Please, Steve, change this situation and give orders to your chiefs in command in Europe to be more commercial on this!!”
Darren Carver says, “I love the mac mini, I am considering buying one but we are always being ripped off so I will proberbly delay switching until the next revision or an EU ruling in the itunes case which may make Apple rethink it pricing structure.”
“I’ve been apple user, I’ve left Mac for price policies… and with me a lot of friends… keep in mind that to retrieve old users those commercial policies aren’t the best choiche!” – states Samuele E. Locatelli.
Remarks Alan Massimiliano Schiaretti, “The very strange thing about the new Mac Mini is that a full-optional version can cost about 1300 euros! That is very high pricing for ‘the most affordable Mac ever’!”
Read on >>>>>>>>>>>>>>>>>>>>>>>>
To: Apple, 1 Infinite Loop, Cupertino, CA 95014, USA
We’d like to make an appeal to Apple on the pricing of the new Mac mini in the European Union. Basing on the last long-term rate of exchange of US Dollars to EUR (et vice versa) — which is 1.3293 on the spot market, so let’s say 1.32 — both announced prices of the Mac mini in Europe, 489.- EUR and 589.- EUR, respectively, are much too high.
Let’s do the math:
Mac mini 1.25GHz is 499 US Dollars excluding VAT
Mac mini 1.25GHz is therefore 378.03 EUR (499 divided by 1.32)
In case of Germany as the buyers’ location, you have to add 16 per cent VAT:
378.03 EUR x 1.16 = 439.52 EUR
If you do the math for the 1.42GHz Mac mini, you’ll end up at 526.39 EUR
So, staying in Germany, you pay 50 EUR (or approx. 66 US Dollars) more for the 1.25GHz Mac mini, and over 60 EUR (or approx. 80 US Dollars!) more than buying it in USA.
Furthermore, there are several reasons that prove our maths:
i) Mostly, complaining customers outside the US are told to forget the VAT — our maths *contain* VAT (here: Germany, 16 per cent).
ii) The profit margin is the same, independent from the sales location, so Apple will have it’s calculated profit margin.
iii) Transport costs are equally the same for delivery to customers in the US and the EU, provided that the Mac mini’s production is a) in Ireland or b) somewhere in Asia.
The final and IMHO most important reason for Apple to adjust or match the price is the main reason the Mac mini was developed:
To increase Apple’s market share.
In the EU, especially in Germany, Apple’s share is very low (somewhat beneath three [3] per cent). The main intention on the project ‘Mac mini’ is to attract more ’switchers’.
But keeping the price that much too high is more than contra-productive.
Sincerely,
The Undersigned
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See:-
angry – Reasonable price for the Mac mini in the EU, Mac mini online petition, January, 2005
investigated - iTunes over-pricing charge, p2pnet, December 3, 2004
January 17th, 2005 at 11:57 pm
Thats the way things go. Even in canada where there is no tax on these devices they charge more than the ‘current’ exchange rate.
Here books come with two prices, $CAD and $USD and they are never near the current exchange rate.
Right now i can buy a mini for $629 CAD, that is an exchange rate of 1.26$
The current rate is 1.22 or costing me 21$ more to buy it in their ‘canadian’ dollar rate.
Its not a question of ‘profit’ margin, its that they as a store can not afford to sell the product at various rates during the week based on the current XXX:usd exchange rate.
As to your math, you use an exchange rate of 1.3293 but that is the ‘current’ rate, the historic rate is closer to 1.25 and if you reverse their math they are using closer to 1.18 rate.
I am not saying that the price difference is fair, but it is standard practices to set the MSRP at a favourable exchange rate. If you wont spend the 60 extra euro wait for someone to sell it (other than apple.com) for ‘less’.
January 18th, 2005 at 6:29 am
Com’on … it cost more to ship oversea
You neeeeeeeeed a lot of sleep! Quit whining!
January 18th, 2005 at 4:02 pm
Has it escaped your notice that everything costs more in Europe, and that salaries and benefits are correspondingly higher? And that this is maintained by erecting trade barriers to the rest of the world? Maybe you should quit whining about a very modest price premium on the new Mac, and be thankful for your high standard of living.
January 21st, 2005 at 3:59 pm
Apple has to hop on the down-pricing train of computers for the mass market, as noted from the comments on the computer news front.
Their elite products have always been over-priced (IMHO with respect to PCs using Intel or AMD processors) losing many potential customers to the MS world -even avoiding extinction once (thanks to Jobs).
Again, Apple is surely trying to compete and stay afloat.
The Mac mini seems a viable answer, with good or bad results – the future will tell.
People using PCs (cheap or not) have many problems not appearing with other systems, including Apple’s. Will others who are practically in daily system repair, like me (Oof, windows booted up again without a problem!), be tempted to switch if the difference in cost includes trouble free operation?
Will Apple provide the same services (product backup) on the Mac mini as on their high priced products?
The iTune products seem to have boosted Apple to change their outlook on the mass market, but can they furnish the same services as before with lower margins?
I don’t have an inkling to the answers.
Now back to the beginning of my reply…
Looking for a change in computers last week, I found Mac mini advertized. My wallet remained closed when I saw the price difference USA/EU, and now I am waiting for an answer for the “why”.
Remark to Apple: Why does the price skyrocket when processor or memory or graphic options are chosen? That’s not the trend today, Apple.
Maybe next time…