Core explains iPod pricing
Core Group has come under fire recently for their iPod and Mac prices, but far from accepting the criticism they have hit back and provided evidence to the contrary saying that they are not overcharging customers.
Core Group Director Rutger-Jan van Spaandonk explains that while there is indeed a significant difference between local prices and that of the United States, prices should be compared to European counterparts as this is the region in which South Africa falls.
When local iPod prices are compared to European prices there is indeed much less of a difference than when looking at the official US based Apple tariffs. When accounting for shipping costs, local taxes and exchange rate movements the effective difference in price across the board works out to around 10%.
Questions have been raised about the bigger differential with products like the iPod Touch than with the iPod Shuffle, but van Spaandonk says that it is a simple matter of increased weight and packaging size which costs more to transport.
Apart from the iPod pricing report on MyBroadband, Ben Kelly’s Finweek Blog also questioned Apple’s local prices. In his follow on blog, titled ‘Eating humble iPod pie’, Kelly explains:
“There is almost no difference between the entry level nano in the UK and in SA. R 1540 vs. R1564. There is a slight difference between the cost of the top of the range Touch which in the UK would cost around R 4107 and in SA costs R 4400. Factor in the cost of shipping and the price difference is negligible.”
With the lower price differential between South Africa and Europe it seems that the main question is not about local pricing, but rather about the pricing differential between the United States and Europe.
An eBay commentator explains that Apple supports regional pricing in each country they sell to, based mostly on distribution and demand.
“Europe and the UK have higher retail prices historically versus the United States. The gap has narrowed from the beginning. When the iPod Photo launched in late 2004, the variance was about £100 between US and UK pricing. The difference is lower today, but VAT still plays a big factor.”
It seems that South Africans are in a similar situation as their European counterparts, and while the price differential seems to be changing slowly one should not expect US equivalent prices in South Africa any time soon.
Good news for iPod enthusiasts is that the new iPod Nano range is already available at retailers, and the new iPod Touch should be available sometime in October.
Loading ...