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by astorsnk 1342 days ago
It's not like they did it out of spite or greed - both the EUR and GBP have plummeted against the USD over the last year. One area they could look at though is outrageous storage premiums. The price jump between levels is now a joke.
2 comments

> The price jump between levels is now a joke.

It has always been a joke. Now it just ain't funny anymore.

300 to 600EUR increase for the most basic iPad is not reflecting 25% EUR collapse.
The european price is actually better than it was last time around, which is surprising. Using Irish numbers (because I'm Irish ..)

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.)

Apple still sells the 9th gen iPad. How much does it cost today in Ireland?
€450.

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.

Apple's pricing in Europe (and anywhere outside the US) seems somewhat hostile. Latin America has similar issues as well.

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.

9th gen is 339EUR in Germany (3rd party sellers).

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.

They're likely pricing in further changes. Better to assume things will get worse and price that in once, than have to reprice every few months.