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Study finds iPads cost most in Europe and UK, cheapest in U.S.
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Study finds iPads cost most in Europe and UK, cheapest in U.S.
Rob Taylor
CANBERRA
Sun May 30, 2010 8:51pm EDT
A customer hold the new iPad tablet computer at its UK launch at an Apple store in central London May 28, 2010.
Credit: Reuters/Luke MacGregor
CANBERRA (Reuters) - Britain and Europe are the world's costliest places to buy Apple Inc's new iPad computer, with prices around a quarter higher than in the United States, a new study has found.
Technology | Lifestyle | Media
While the much-hyped tablet should trade at broadly the same price globally if exchange rates were properly adjusting, Australia's CommSec iPad Index found big savings for Europeans traveling to Asia, the United States or even Down Under.
"In the UK, Germany, France and Italy an iPad costs 20-25 per cent more than in the U.S.," said Craig James, chief economist at the CommSec share trading division of Australia's Commonwealth Bank.
"The question is whether Apple has priced its product too high for the European market, or whether the UK pound and euro need to depreciate further to bring global pricing into line."
CommSec's index is a modern variation on the long-running Big Mac index compiled by The Economist magazine and compares the price of iPads in 10 countries, including Germany, France, Italy, Switzerland, Spain, Britain, Japan, Australia and Canada.
Prices for the cheapest, WiFi-only version range from $499 in the United States to the equivalent of $620 in Britain for the entry-level 16 gigabyte model. Canada ($520), Japan ($536) and Australia ($533) rounded out the price basement countries.
At the top end, an iPad 64gb model with WiFi and 3G connectivity cost $829 in the United States against $1,010 in Britain and $980 in Germany, France and Italy.
The tablet device, CommSec said, is identical across the globe so theoretically the only difference in pricing should be freight charges and local taxes.
But national debt woes in Europe and Britain have rocked the Euro and pound in recent months, throwing global currencies into turmoil.
"More generally, the CommSec iPad and CommSec iPod indexes suggest the U.S. dollar needs to lift against major currencies, but more so against the Euro and pound sterling," James said.
Apple fans have mobbed stores in Europe and Asia as the iPad went on sale outside the United States, with some shoppers queuing all night to get their hands on one.
The device, a little smaller than a regular notebook computer and with an open, color touchscreen, is designed for surfing the Web, watching movies and reading, and has been hailed by the publishing industry as a potential life-saver.
(Editing by Belinda Goldsmith)
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See All Comments (3) | Post Comment
May 30, 2010 11:14pm EDT
I’m surprised to see that this article misses the basic fact that the $1010 for the 64GB iPad in the UK includes local taxes whereas in the US you would have to add taxes to the $829 quoted in most states.
XavFish
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May 31, 2010 12:18am EDT
So yeah removing the VAT (17.5%) in the UK you arrive at the true difference in price $835 in the UK vs. $829 in the US. VAST difference when you look at it correctly eh? I am surprised Reuters of all news outlets got this SO wrong.
jdguzman
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May 31, 2010 2:21am EDT
A study, no kidding?
What could be harder than to open Apple’s own store for US, UK and Europe and see the prices?
A study!
dmitriid
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