If I’m beginning to bore you with Brexit I apologize, but with news that Apple boosts its prices by hundreds of Pounds post-Brexit, it could be costing you the shirt off your back to own an Apple device. Google News Services recently reported this hike in prices in Pounds for UK shoppers, leaving the idea of saving money by buying abroad in tattered. This is at least true of Apple.
Apple Price Points
As Apple released its shiny new line of MacBooks, customers in the UK were surprised by an unwelcome announcement of a price rise across the range of Apple products, as reported by Google News.
Let’s check out some example UK price points Google News identified:
1.Previously, the 13-inch MacBook Pro started at £999
The new 13-inch MacBook Pro without a Touch Bar now costs £1,449, and with Touch Bar £1,749.
So, previously £999. Now £1,449 or £1,749
2.Previously, the 15-inch MacBook Pro started £1,599 but will now set you back £2,349.
So, previously £999. Now £1,559 or £2,349.
Economics Of Volume
In these days of global commerce, competition, and price wars, we would generally see prices either remain at a similar level relative to inflation and currency values. In a lot of cases, we often see prices drop on goods, as they’re mass produced and the market becomes saturated.
Economics Of Apple
I am going to say something that on the face of it may be a generalization. I know I’m in danger of alienating some of my readers but bear with me while I try to get to my point. They are two types of technology consumers in this world and they break up into two main groups, the Apple consumers, and the non-Apple consumers. If you’re an Apple consumer you will probably think nothing of camping overnight in a queue to pick up the latest device on its release, and don’t think too much about the higher than average prices.
The non-Apple consumers seem to be more interested in freedom of association with multiple providers of hardware and software and lower prices.
Whichever church of technology you belong to, we need to ask if these prices increases are line with Apples usual procedure of maintaining higher price points, to remain in the aspiration product market, or simple global economics.
I have to point out this is only my personal opinion and I fully admit although I think the Apple product line is impressive, I personally find the restrictions and the prices make it a no go area for me. However, even after saying this, I don’t think it’s out of order to suggest the price hikes appear to be a cynical move on the part of Apple. Perhaps you have a different opinion?
The Take Away
It’s true Apple has given every customer a shock and a choice to make. With the price rise across the board, it seems indiscriminate, but the UK has been the worsed hit.
Okay, so we can say it’s a new product line and the MacBook Pro prices are higher everywhere due to its more advanced capabilities etc….It can also be argued the additional increase in the UK is a direct result of the plummeting value of the pound following the Brexit result.
As Google News service reported, it was pointed out on Twitter feed that, although it looked like Apple was behaving unfairly by simply switching from $ to £ then took off £50. However, the UK MacBook Pro prices are simply the result of a sum that goes like this: Convert Dollars to Pounds and add 20 percent for VAT. (UK Value Added Tax).
Whatever you feel about the situation, whether Apple should make this simple equation or work with volatile exchange rates, the result is higher prices for all Apple products in the UK. This isn’t going to affect you in the US or elsewhere, but it does mean you can’t take advantage of the falling Pound to save money on products bought in the UK.
I had previously written a piece on making money as the Pound plummeted and it’s still possible to do this, but sadly not with Apple Mac products. It seems, although some companies may have no issue with their customers saving a few Dollars, there are always some that don’t like it too much. In short, they may want to lay the blame at the feet of Brexit, but the truth is not always that straight forward.
What do you think?
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