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Author Topic: Apple: dollar = euro?  (Read 1934 times)

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Offline motorollin

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Re: Apple: dollar = euro?
« on: November 05, 2007, 10:04:09 AM »
It's a different market. The prices are bound to be different. You wouldn't expect to pay the same for a loaf of bread in the US as you do in your own country would you? :-)

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moto
Code: [Select]
10  IT\'S THE FINAL COUNTDOWN
20  FOR C = 1 TO 2
30     DA-NA-NAAAA-NAAAA DA-NA-NA-NA-NAAAA
40     DA-NA-NAAAA-NAAAA DA-NA-NA-NA-NA-NA-NAAAAA
50  NEXT C
60  NA-NA-NAAAA
70  NA-NA NA-NA-NA-NA-NAAAA NAAA-NAAAAAAAAAAA
80  GOTO 10
 

Offline motorollin

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Re: Apple: dollar = euro?
« Reply #1 on: November 05, 2007, 10:46:23 AM »
Cost of production is only one of many factors involved in deciding the price of an item. The manufacturer/retailer will not just arbitrarily add a markup to however much it costs to make the item. They will take things like the local economy and public demand in to consideration.

In a country like the US, there may be significantly higher demand for those items. High demand + high supply = low prices. In other countries there may be less demand but the same supply, which will increase the retail cost.

The perception of value of any given item will differ both within and between countries. Maybe Apple's market research has shown that people outside the US value their products more than those within the US, and so will be prepared to pay more for it.

If a country's economy is doing very well, IOW people are earning good money and have lots of disposable income, then vendors are bound to take advantage of that by raising their prices.

So as you see it's not as simply as the manufacturer saying "It costs us $x to produce this no matter where we sell it, so lets sell it for $x + our markup of $y". They are not that scrupulous. Any retailer/manufacturer will want to sell at the highest price they can to maximise their surplus (profit), and that is why they set the prices at different amounts for different countries.

--
moto
Code: [Select]
10  IT\'S THE FINAL COUNTDOWN
20  FOR C = 1 TO 2
30     DA-NA-NAAAA-NAAAA DA-NA-NA-NA-NAAAA
40     DA-NA-NAAAA-NAAAA DA-NA-NA-NA-NA-NA-NAAAAA
50  NEXT C
60  NA-NA-NAAAA
70  NA-NA NA-NA-NA-NA-NAAAA NAAA-NAAAAAAAAAAA
80  GOTO 10