Canada’s largest newspaper, the Globe and Mail, asks: “Just what does Apple Inc. have against Canada?”. The article in question cites higher prices despite the almost-equal dollar and delays in bringing new products North of the border, especially the iPhone.
So why does Canada get the short end of the stick? Well, the Globe and Mail has a few good explanations: it’s a relatively small market, thus not a priority, and negotiating with potential partners for movie rights or cellphone plans takes time and effort. Specifically for the iPhone issue, it’s not secret data plans are outrageously expensive here, which doesn’t help.
As for the higher prices, Apple rarely adjusts its prices between products refreshes, so the most recent products are often closer to the current exchange rate, but a noticeable 5-10% premium is always added on top of that. I believe Cupertino’s explanation is that doing business internationally costs more.
Overall, the article makes valid points, but I think all international users can relate to these issues. Compared to the rest of the world, the Great White North does have a few TV shows, a few Apple stores and prices are relatively low. So go outside and play, eh? Spring’s finally here!
[Hat tip: Lawrence & Sarah]
Gosh, I couldn't agree more. I am so sick of hearing my fellow Canadians whine about Apple pricing. I actually think Apple does a pretty good job adjusting its prices--certainly a better job than most other sectors (hello, car manufacturers). I do wish movie rentals would get here, and a lot of folks are chomping at the bit for iPhone, but consumers can hardly blame Apple for Rogers' dragging its feet.
I've said it before, I'll say it again. If you don't like it, go to the US were you can buy products in US dollars. For ages, Americans have been enjoying great deals by taking their money away from the US. Now you can get great deals by bringing your money into the US. It's called a correction. Demanding lower prices in your local currency in response to a weak US dollar belies the reason for the weak dollar.
Besides, what do you think happened to Apple's expenses? It's buying components and manufacturing from other countries with a weaker dollar, expenses have gone up. Apple makes some of that up by selling in stronger currencies; but most of its business is in the US, so it isn't a wash.
You can't just take the price of something in CAD, multiply by the USD/CAD exchange rate of the hour to get the price in USD, and cry foul. The real exchange rate calculation is much more complicated.
As a Canadian absolutely DYING for an iPhone, I feel the pain of this neglect. I think the original article should do some fact checking though, as Rogers (the only possible carrier for the iPhone in Canada) recently released unlimited data plans at even lower rates than AT&T. I was sure this was to pave the way for the iPhone, but alas, I'm still waiting. Bummer.
It's called a CE mark, and dealing with Canadian Regulatory Affairs is a horror show.
Before anyone gets too excited by the Rogers so-called unlimited data, one should look very carefully at the fine print. There are many internet activities that are not covered by the plan and result in a significant charge (i.e., Google Maps) for data usage. With such pricing, I fear a Canadian sold iPhone is but long-distance hope.
Yeah... Poor ol' Canada. 5-10% premium is horrible. Nothing compared to, let's say, some countries in Europe or India, where the premium is more like 25-30%... But that's nothing... Europeans and Indians sure have enough money to spend, at least that is what Apple (or Apple resellers) thinks.
It's too bad really, eh! Apple is the greatest computer company and Canada is the greatest country, so you'd think a partnership would be a no-brainer. Perhaps Apple, flush with cash, should just buy Canada. I'm OK with being and Apple-adian! eh!
It is a little frustrating, but I was surprised to see that a 5 license of Leopard cost the same in Toronto as it does on the American Apple store. Maybe that parity hasn't reached the computer lines yet, but I welcome it on the other little things.
Of course, Canadians can always shoot across the border, buy an Apple product, and bring it back home...
And of course I'm sure everyone will declare GST/PST on any machine so purchased and imported. If you use it before you bring it home, wouldn't it qualify as a used computer?
dave
What about the disparity in book and magazine pricing? Many publishers still charge a big premium for a book or magazine sold in Canada versus the US...who's keeping that extra cake??