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  • News - Written by on Wednesday, June 22, 2011 12:21 - 19 Comments

    Apple hikes Aussie Final Cut Pro X prices

    Iconic technology giant Apple appears to have upped the price of its Final Cut Pro X software for launch in Australia, with locals to pay about $66 more for the exact same software — delivered through the exact same online store.

    Overnight the company debuted Final Cut Pro X, which is used widely by both amateur and professional cinematographers. The new version features a new timeline and other workflow enhancements, and has been re-built to be a 64-bit application. The application can now handle more than 4GB of memory, and can use the processing power of users’ graphics cards, as well as new audio editing tools.

    Final Cut Pro X will be sold through Apple’s Mac App Store in the US for US$299.99 (AU$283.72), with the Motion 5 and Compressor 4 tools to additionally be available for US$49.99 (AU$47.26) each through the same portal.

    However, in Australia, Apple appears to have upped the price of the software packages — listing them at AU$349.99 and AU$59.99 respectively, despite the fact that they constitute the same software delivered through the same online store. Spokespeople from Apple did not immediately return calls enquiring about the price hike.

    The news comes as Apple has recently been heavily criticised in Federal Parliament for price hikes on its technology being sold in Australia. Federal Labor MP Ed Husic raised the issue in March, noting he would write to Apple to demand answers as to why the mark-ups occurred.

    “One more noteworthy point is that their products are largely manufactured in China and shipped out from there to both Australia and the US,” said Husic at the time. “Consumers are struggling to work out why they are charged way more for these products and they would like some answers.”

    “Given the enormous brand loyalty Apple no doubt enjoys, I think there is a valuable opportunity for the company to explain why the same products in the United States cost significantly more here. To help get some answers quickly, overnight I will be writing to Apple Australia’s managing director to put some of these differences to him.”

    Apple is not known to have responded to the letter.

    In addition, other technology suppliers have also come under fire over the issue over the past few months. In mid-May, PC manufacturer Lenovo was forced to mount a spirited defence of its Australian pricing, despite launching its flagship new ThinkPad X1 laptop in Sydney for $560 more than the same hardware costs in the United States.

    Adobe has also come under fire over the issue in the past, with its flagship Creative Suite (including Photoshop) usually costing Australians hundreds of dollars more than they would pay overseas — despite the software selling through the same online ordering platform.

    Image credit: Apple

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    1. Posted 22/06/2011 at 12:27 pm | Permalink |

      Does Apple levy various (US) state sales taxes on iTunes purchases?

      I know the Australian price includes GST (as required by law), but in the US prices are listed excluding sales taxes – why, I have no idea. It’s damn annoying – so that *may* just bring the discrepancy down a little.

    2. Posted 22/06/2011 at 12:28 pm | Permalink |

      Good article, but I’m not sure “in real terms” is the right phrase – I’m pretty sure you’re not doing inflation adjustments in your price comparisons :-)

      • Posted 22/06/2011 at 12:34 pm | Permalink |

        Is it a technical term?

        • Posted 22/06/2011 at 12:36 pm | Permalink |

          Yeah, it is.

          “Real terms” generally refers to numbers that have been balanced against various other economic factors in order to provide a more relative comparison. It’s more than just running them through a currency converter.

          However, for most people reading this article, putting your usage of the word into its correct context shouldn’t be too much of a stretch.

          • Posted 22/06/2011 at 12:46 pm | Permalink |

            No worries. I was aware of that definition, I guess I used the term a bit casually here. Have deleted it from the article.

    3. Posted 22/06/2011 at 1:22 pm | Permalink |


      • Jayar
        Posted 22/06/2011 at 1:36 pm | Permalink |

        Intelligent reply there.

        I am sure you have many pieces of evidence to support your very in-depth response, and I for one, would love to hear them so I am all ears.

    4. Jayar
      Posted 22/06/2011 at 1:35 pm | Permalink |

      So, everyone understands the concept that Apple use a tiered pricing structure.

      And, no one complained when the AUD was 80c, but all of a sudden because we’re now stronger then the USD everyone feels the right to complain about this?

      I don’t understand that.
      I don’t understand how it’s okay if it works in our favour, and everyone agrees to it, then if we do not have our way we cry, kick, and scream over it all.

      If you don’t like it, then don’t use it. It’s that simple.
      Apple use a tiered pricing structure the world over, we (Australia) are not the only country where this happens.

      And if you want to have a look at that structure, just head to the Apple website, it’s all there…

      • Dean
        Posted 22/06/2011 at 6:55 pm | Permalink |

        When did it ever work in our favour?

        Besides, of course people are only going to complain when it’s not in their favour, why would you think otherwise?

    5. Rob Weir
      Posted 22/06/2011 at 2:27 pm | Permalink |

      You forgot to mention GST – 10%, so that’s half the gap. Possibly the rest is just their projected future exchange rates, possibly the usual profiteering, who knows. $1000 less than the current version, either way.

    6. Posted 22/06/2011 at 2:48 pm | Permalink |

      I’m far more concerned with Adobe pricing – 50% increase on top of $1000+ products. Admittedly this is because I use said products and not final cut. Lately i’ve found apple to be by far the most reasonable in it’s local pricing, I think people jump on them because they are popular (no parliamentary mention of the outrageous video game pricing structures for example)

    7. Myke
      Posted 22/06/2011 at 3:24 pm | Permalink |

      If you were going to build a mother ship, you’d milk some Aussies too.

    8. Posted 22/06/2011 at 3:35 pm | Permalink |

      Online delivery of goods doensn’t include GST a lot of the time. The software I’ve bought from Adobe has been digitally delivered, and billed in A$. There has been NO GST in the price as the vendor is technically in Ireland. Apple could easily ‘ship’ from the US and avoid Australia’s GST.

    9. DOP2026
      Posted 22/06/2011 at 3:35 pm | Permalink |

      Cinematographers? You mean editors right? ;-)

      • AVID_lad
        Posted 30/01/2012 at 2:06 pm | Permalink |

        ha ha, great article. Cinematographers indeed!

    10. Verquilla
      Posted 22/06/2011 at 6:43 pm | Permalink |

      Stop complaining, if you don’t like the price, don’t buy it, this update of Final Cut is priced way below other professional softwares in this category, and people pay more for Apple because their products just works, I myself rarely have problems using Apple products, and because their product physical and interface design are the most beautiful in its class. They spend more money researching to create better revolutionary products, so stop complaining and if you don’t want to buy the price they tag for Final Cut Pro X, then buy similar software at way higher price.

      • Posted 22/06/2011 at 6:44 pm | Permalink |

        So we should just shut up and accept the “Australian technology tax”? No thanks ;)

    11. Matthew
      Posted 23/06/2011 at 10:24 am | Permalink |

      The ACCC should be investigating wholesale trade in this country in regards to regional pricing. While the big retailers do have some effect but on product where there is very little competition it is the supplier dictating terms to the retailer. Unless something is done soon more and more of Australian retail trade will go off-shore. What happened to book retailing has less to do with rise of ebooks and more to do with the Australian publishing cartel dictating none-competitive pricing to Australian retailers who had little other choice but to go to them. The same is happening in electronics and while the same trade restrictions that where placed on books don’t apply the manufacturers do in general control the supply of their goods world wide and are able to who buys their goods and from where.

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