Michal Ždanský On March 20, Apple sent an email to media partners with the prices of the new iPads for the Czech Republic. However, we will not please Czech customers very much, the tablet has become more expensive compared to last year. But why?
First, let's put things into context. When the iPad 2 went on sale in the Czech Republic, there was no Czech Apple Online Store. The only places where the tablet could be officially purchased were Czech Apple Premium Resellers and Apple Authorized Resellers, i.e. stores such as QStore, iStyle, iWorld, Setos, Datart, Alza and others.
On September 19, 2011, the Apple Online Store was launched and offered the Apple portfolio in many cases at more favorable prices than those of the Czech APR and AAR, which was also true in the case of the iPad. I personally bought an iPad 2 3G 32 GB from the Czech APR dealer for the price of CZK 17. The same model was then offered by Apple in its e-shop for CZK 590, i.e. at a price CZK 15 lower. For a complete overview, we have compiled the following comparison table:
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New iPads in the Apple Online Store cost approximately the same as iPad 2s cost before the existence of this online store at Czech APR sellers. The price increase within the Czech Republic is thus relative. The question remains, however, why Apple has become more expensive in its Czech store. At the same time, the trend is the opposite, over the years we have encountered price reductions, both within our country and in general for some Apple products. Take last year's price reduction of iPods as an example.
Why the price increase?
One might think that the company simply wants to squeeze as much money as possible out of the Czech customer, just like the Czech operators do. iPads are doing well in our country, there is a lot of interest in them, so why not make money from the tablet-loving Czechs. However, taking into account the previous paragraph, this idea does not make sense. Pricing is just not Apple's style.
So what is the mysterious factor that has so influenced Czech prices? He won't be so mysterious after all, you just have to watch the development of the exchange rate of the crown against the dollar. At the beginning of September 2011, i.e. two weeks before the opening of the Apple Online Store, the dollar was selling for approximately CZK 16,5. As of today, however, we are at a level roughly 2 crowns higher. By a simple calculation, we find out that the dollar has risen by a rounded 10 percent since September.
When I return to the specific prices, for example for the mentioned 3G version with 32 GB, I find out by a simple calculation that 17/600 = 16. The price went up by 000%. Chance? Also note that it did not increase by a constant amount, but in direct proportion. The more expensive the model, the bigger the price difference between the two iPad generations. For the 1,1G version, for example, the difference is from CZK 10 to CZK 3.
You might be wondering why Apple's other products haven't gone up in price as well. The answer is quite simple, apart from Apple TV, the iPad is the only product that was introduced in the last six months. The price of Apple TV has apparently not changed for two reasons: the difference is not so huge (it would be 280 CZK) and the company is trying to get into our living rooms. They have seen the Apple Online Store so far - that is, if the economy of our state does not improve. Other candidates for a price increase are MacBook Pros, iMacs and, of course, the new iPhone. So let's hope that the koruna will strengthen against the dollar by the time the new phone model is introduced.
Well, I'm personally quite sorry, I'll buy it anyway 4G 32GB, but it seems unfair to us customers for several reasons. First, the original model was cheaper. Secondly, we are only second to the US and 9 other countries, which I think is also unfair considering the price. Third, we have to wait until the launch day and who knows how many weeks the delivery will be, so this seems unfair to me considering the price that we are paying more and we don't even have the option of pre-orders. It's just that Apple has been acting strange lately... we won't change the prices, they said on stage in Yerba Buena, but they forgot to add that they won't change them only in the US and maybe a few other countries. In my opinion, if they say the prices will stay the same, they should stay the same everywhere. I'll see how the delivery time develops, I'll order as soon as the Apple Store opens, but if it's a disaster, I probably won't forgive myself an inquiring email about the situation and if possible directly to Cook... I'm really starting to miss Jobs in that company. In addition, yesterday I came across an interesting article on Flipboard about what nonsense Apple is doing with what it has as Cash and that paying such a gigantic dividend is suicide, and it probably really is, because it is about 10 billion dollars a year, which I think it's not enough for Apple either, I'm afraid that soon they'll have to manage their finances a bit, because otherwise there won't be any research left for new technologies and they'll gradually fall into oblivion, this time it's over, but no more Jobs will be cut. Paradoxically enough, the stock is still flying up, I hope it stays that way, but I'm really a bit worried about the apple company.
May I ask if you read the article? It amazes me how people in CR think they are the center of the world and that those in the USA are messing with us... Look at the countries that are also in the second wave, Italy, Austria, Finland, etc...
As far as the dollar/koruna or dollar/euro/koruna exchange rate is behind the price change, it is only seen in Apple, it is explained quite logically here.
If you haven't noticed, there will probably be problems with deliveries everywhere, as always when a new iPad or iPhone is launched, and just like last year with the launch of the iPad 2, so I don't know why everyone is surprised when there is such a demand for something. And I didn't realize that in recent countries the second wave would be pre-orders through the apple store, here some APRs offer it, so what's the problem?
And I'm still wondering how the brick-and-mortar Apple Store is missing here, and how Apple can afford it.
I am sincerely looking forward to the email about Cook and what you will argue.
I read the article and I don't think anything revolutionary about the Czech Republic, on the contrary, I think I have quite an overview of the world. I take the exchange rate changes and others mentioned as an argument, but even if I say that the prices will remain the same, they should remain the same everywhere. In the same way, I always defend Apple that high prices are only relative when, despite these prices, they do not manage to deliver products on time, at least soon after the introduction of the product. Well, I didn't say anything about the brick-and-mortar Apple store, so I don't know what you're getting at here. Given that an average of 17M USD is poured into one Apple Store, it will take a long time before we as the Czech Republic earn customers from it. I just wanted to point out that since we are the second wave, we don't have pre-orders and who knows how the delivery will be, the price is disproportionately increased by these facts.
Martin, Apple has almost $100 billion in quick cash assets. During three years, it will pay dividends and buy back shares of approximately USD 45 billion. Only in IV. quarter of 2011 had a net profit of 13 billion dollars. It is pointless for Apple to hold more cash. You don't have to worry that he doesn't have development or acquisitions :-)
As I already asked, how is it with the purchase of a new Ipad and apple TV from the USA. By that I mean the guarantee if it is not blocked, etc. I have a sister there who would send it to me. I decide mainly because of the price, when the 64GB version was distributed almost 5 thousand. I don't mind the one-year warranty, and if so, the warranty can always be extended.
If you take into account the duty, it will cost you exactly the same. If you try tricks, such as unwrapping it and sending you just the iPad in some kind of foil, you may not get away with it either. Everything goes through the scanner at the border, and even unpacked items can be scanned.
And what if he brings me because he might be going to the Czech Republic next month
Then add shipping and VAT.
And you'll find out it's not worth it.
If you buy it in the USA, the warranty is not valid in Europe. It's not worldwide anymore, but for continents :) just like that btw :)
I don't know about you... but didn't the AppleTV cost 2.400,- by any chance? It is now in the online store for 2.800.
No. 2400 became old, shortly after the introduction of the new one, but it still couldn't be bought. It was 2800 before.
So the Friday purchase probably won't take place and I can buy it in Austria for 479 euros? I don't even want to know what the prices will be here...
I believe that the price will not increase in countries where payment is made in euros.
Wait, wait…
If I'm an American and for $1 instead of CZK 16,5 I get "about 2 crowns" more, won't it be more advantageous for me? :D
It's not that simple. This money does not flow to America, it stays in Europe. Otherwise, Apple would have to pay huge taxes in the US.
But it doesn't matter where the money goes, but we're having fun with the course - so you're having fun (in the article). If it is somehow different, write it (in the article). Or do you want to tell me that the reason for the price increase is the strengthening and weakening of the Czech crown?!
You're looking at it wrong. Apple as a manufacturer wants, for example, USD 1000 for an iPad, i.e. a year ago he could sell it for 1000x16,5 but now to get $1000 he has to sell it for 1000x18,5
Hmm sorry, I just had to think for a minute. He gets less dollars for the same price, you're right.
"
This money does not flow to America, it stays in Europe. "
Well, that's fine.
Just come to Slovakia and buy the cheapest one for €479
With the development of the exchange rate, if in half a year the dollar returns to let's say 1 for 16,5 CZK, will it be reflected in the Czech stor somehow? It seems to me that the prices are fixed there. Could someone clarify this for me?
I would like to point out that you are right about the weakening of the koruna against the dollar, but on the other hand, the dollar has also strengthened against the euro, and the price situation for the new iPad in Germany is the opposite – its basic version has become cheaper from €499 to €479. So we can't just look for the exchange rate behind everything.
And wasn't the price at APR at the start of sales almost the same as it is now with the new iPad? At a minimum, the 1st generation iPad in the 64GB+3G version should cost the same 19890. Now the only question is whether the online store did not increase the price at the beginning of the sale in order not to cannibalize the APR sale.
I wouldn't look for the dollar exchange rate behind it at all, for our region Apple has distribution companies in Europe and applies a fictitious exchange rate of 1 USD (USA, Canada, Australia,...) = 1 EUR. It is easier to start additional expenses such as distribution, second year warranty, movement of the exchange rate of national currencies, which are significantly fixed to the Euro, while the USD jumps quite unpredictably. The slight discount (Germany €479 vs. recalculated €499) can be explained by the absence of the risk of movement of the national currency.
At least that's how it is for iZarizeni. Maybe someone has iTunes recalculate $0.99 vs. €0.79, but there are a number of other parts involved, on the one hand it does not go to the pocket of the manufacturer but to third parties, and finally all the logistics are lost there.
I just called the apple online store and found out that it will be available from 23.3. from approximately 8:00 a.m
So I don't know, but if I look at the prices in Germany, it is about 500 CZK more expensive here. This means that they had to make it more expensive there as well, or they had it more expensive than me already with the number two. The 500 is not even worth going to Dresden for it, and I have about 50km