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Pricing: Apple Defies Australian Government
daria42 writes "This week it was revealed that Apple has still not responded to Australia's Federal Parliament on the issue of why the prices of its products are significantly higher in Australia than they are in the US, five months after the query was first raised by a member of parliament from Australia's governing Labor party. Apple has refused to issue a statement on the matter or even acknowledge the issue. What will it take to get Apple to open up — a national enquiry?"
Wouldn't you raise the price of your products if you had to sell each and every one of them with a Velcro pad to hang upside down?
"A door is what a dog is perpetually on the wrong side of" - Ogden Nash
It costs Apple extra money to prepare products for the Australian market by turning everything umop apisdn.
Apparantly they are keen to talk now.
Boffoonery - downloadable Comedy Benefit for Bletchley Park
Why attack Apple for pricing products so they make the same profit in every market per person? There's no reason why a $39,000 Nissan 350Z (I had a 2008GT) should cost $67,000 AUD. Everything costs more over here. This is made worse now that the USD is less valuable then the AUD.
I'd say the Australian government should be going after the automotive industry and many others to lower their prices and cost of living substantially. It doesn't cost that much to put a car on a boat and ship it. Japan to the US? (Low US price). Japan to Australia (shorter distance) (price almost double US model)
Normally I'd agree. If people don't like the price being set by Apple they should shop elsewhere. For hardware this does have limitations however as certain sectors 'require' apple products and as such you have to pay an unfair price. If your then running a business out of Australia this makes you less able to compete in a free market.
The simple solution should be to allow purchases of products anywhere in the world at a common price and then you pay the shipping.
The problem with that solution is warranty returns/service.
HOWEVER what mainly started the inquest into the price difference wasn't actually hardware it was itunes and the price of music.
Payback is a bitch. That's what you get for sending us Rupert Murdoch.
"A door is what a dog is perpetually on the wrong side of" - Ogden Nash
In the UK, a huge price difference can be explained by 20% VAT added to the price, and cost of better consumer laws. Australia seems to have 10% sales tax and someone who knows might comment on consumer protection.
And if one product is too expensive, people are free to buy from competitors.
Well it's not like WE wanted him either!
You mean like the Galaxy Tab 10.1? It's barred from import into Australia due to Apple successfully winning an injunction against it due to patent disputes.
we should probably just cancel that free trade agreement then, seeings though it appears worthless.
>>You mean like the Galaxy Tab 10.1? It's barred from import into Australia due to Apple successfully winning an injunction against it due to patent disputes.
And you say iPad prices went up, too??
Man, that's a weird coincidence.
Case in point, "the average price of a movie ticket in Australia for 2010 was AUD$12.98. In the United States, though, the average ticket cost just $US7.89 (approximately AUD$7.40)" [1]
Having said all that, I don't mind the government looking out for it's people who are being priced gouged.
Oh, and any American who thinks this kind of complaint seems a bit whiny (and are under the delusion that there is much a consumer can do about it) you all squealed like stuck pigs when your gasoline hit $4 a gallon for goodness sakes.
[1] http://www.choice.com.au/reviews-and-tests/money/shopping-and-legal/shopping/cinema-rip-offs/page/do-the-math.aspx
Certainly not TFA. My beef is with the iTunes store - to buy an album here costs AU$17.00 (US$17.63), a huge hike over the $10 price the US enjoys.
If I wanted an iPad, I could always import one from the US, but I can't buy an album from the US iTunes store; they refuse to sell it to me, which is a restriction of trade under Australian law, and something the ACCC has ruled is illegal, at least when applied to physical music media like CDs.
Why would anyone engrave "Elbereth"?
They sell those, but apparently the law has a different view of what the warranty should be, from the Australian Government
A consumer buys a plasma television for $6000. It stops working two years later. The supplier tells the consumer they have no rights to repairs or another remedy as the television was only under the manufacturerâ(TM)s warranty for 12 months. The supplier says the consumer should have bought an extended warranty, which would have given five yearsâ(TM) cover. A reasonable consumer would expect more than two yearsâ(TM) use from a $6000 television. Under the consumer guarantees, the consumer therefore has a statutory right to a remedy on the basis that the television is not of acceptable quality.
The supplier must provide a remedy free of charge. This may also amount to misleading a consumer about their rights.
IANAL, but this seems pretty cut and dry to me, if an expensive computer "breaks"(even if it is the fault of the user), then the company is responsible for replacing it, even if the original warranty has run out.
Monstar L
Actually, many Australians do import from Hong Kong and it is relatively painless as long as you make sure you are using a reputable importer. Even with the cost of shipping from Hong Kong and the importer's mark up, you still often only pay 2/3rds of what it would cost from an Australian retailer.
Refuse sale and seize all their products under government jurisdiction until they answer. I'm sure that would get their attention.
That might work under a fascist state or even a communist one but last I heard Australia was still capitalist and AFAIK Apple hasn't actually broke any laws doing this.
Like a kangaroo?
The cost of everything is higher in Australia. Locally grown food costs more in Australia then it does in the US. The US government per diem is 2.5x higher in Sydney than New York City. This is not because the US government wants everyone to have more fun in Sydney.
How can they be so out of touch. It costs more to do everything because the cost of living is higher. Learn something about your own economy. Why should Apple be required to explain Australian economics to parliment. It is funny when Internet co mentors make these senseless claims. It is just scary when officials that should know better do it.
IANAL, but this seems pretty cut and dry to me, if an expensive computer "breaks"(even if it is the fault of the user), then the company is responsible for replacing it, even if the original warranty has run out.
This law reads very much like in the UK and I am sorry to say, but you are wrong. If the consumer is responsible for the damage (through misuse or inappropriate use) then the warranty does not hold. The length of protection granted by the law will also vary on exactly what has been bought.
As to costs, that can also vary. The consumer can be responsible for transport and labour. It depends on what was bought and what (if any) history of the dispute.
Finally, it matters not one whit what the manufacturer applies in the way of warranty. The contract is between the consumer and the retailer. In the case of Apple the manufacturer and the retailed are one and the same, this is not always the case.
Have you ever stopped to think there might be hidden taxes in those prices? I mean either there is some AU import cabal sitting there making everything more expensive, or internal politics has taxed the items to some degree by either requiring a direct tax because of emissions, or warranty services or whatever.
My neighbor purchased some English car and had it imported to the US. It cost him close to 6k US on top of shipping to clear customs and then another 3k to get an inspection and US title for it. Now that's an individual but I know there are things pertaining to companies like Ford has a motor that is more cleaner and efficient then anything they sell in the US (*at least as of a few years ago) but only sells it in Europe because some regulation and union or rights licensing contract prohibits its sale in the US.
The title of the story is inflammatory as this MP is NOT the Australian Government. Apple was justified in not responding. A member of Parliament has no standing to ask such a question with the expectation of receiving an answer.
The US government have made it clear that we have no inalienable rights; any we do not defend vigorously will be taken.
You mean like the Galaxy Tab 10.1? It's barred from import into Australia due to Apple successfully winning an injunction against it due to patent disputes.
Until the 1st of September. The hearing is on the 29th of August and Samsung feels so confident of wining they've announced the release for the following Thursday (late night shopping day in Oz). Realistically with the standard of evidence Apple have been presenting, Samsung couldn't win easier if they were represented by Charlie Sheen on Winning Juice.
Calling someone a "hater" only means you can not rationally rebut their argument.
This is of course entirely true, and most of us have been simply importing instead (the UK is actually the best value source right now). We can usually save 30-60% by buying online & overseas, even after shipping (bypassing the 10% GST helps too).
The problem with this is the local retailers are put in an impossible position. Their sales drop drastically, but their margins are already thin. All the excess profit on what sales they get go to the local distributor, or more often to the US publisher who sells to the distributor at an inflated price. The retailer could of course buy from overseas retail outlets themselves, import in bulk and still have plenty of room to undercut their peers (and some do), but this jeopardises their relationship with their suppliers (who frequently also sell things the retailer can't import so easily).
Result: sales slide, the local economy suffers, and the publishers usually blame it all on Australians being a bunch of lousy pirates.
Why would anyone engrave "Elbereth"?
But can you afford to fly back LA for your first warranty claim? Your second ?
That's why instead, Dell have to put a support team on the ground in Australia for a far small customer base, pay local taxes, pay accountants to be familiar with local requirements and make filings, pay for space, communications infrastructure, warehousing, etc.
And they do all of that to a fairly remote, fairly small consumer base.
That's where a lot of costs come from.