blog As you may have noticed, throughout today Apple, Adobe and Microsoft will be fronting up to the Federal Parliament’s IT price hike inquiry. We’ll have more on that later, but for now suffice it to say that Apple, the first cab off the rank, has already started defending its local price differences as largely being due to GST and copyright fees. The interesting thing is that, according to an extensive analysis of the company’s Australian markups published by Macstories today, this may be relatively accurate. The chart-heavy analysis concludes:
“In the past, Australians have complained about the prices of Apple hardware compared to US prices, but that is no longer much of an issue. On the whole, Apple hardware in Australia has a fairly low markup that in my opinion is now acceptable – though the iPhone 5 is an exception to this, and should be lower. The real issue here is the markup on media – and specifically, iTunes. Music prices are just untenable where they are now, whilst movies and TV shows could also use significant reduction in the Australian markup.”
This analysis reflects what we’ve been reporting on more sporadically in terms of Apple’s Australian prices. Over the past several years the company has undertaken several initiatives to homogenise its Australian pricing with its US pricing, especially on products it 100 percent controls itself, such as its hardware and software solutions. It’s broadly only now in areas such as iTunes, where it acts as a marketplace and can’t set all of its own prices, that Apple is overcharging Australians. Of course, the same can’t be said for Adobe and Microsoft; it’ll be interesting to see what they tell the inquiry about their prices.
Image credit: Apple