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That is true only while the Euro is weak. I lived in the US when the original iPad came out. I bought it it on day one, for 500$+VAT. At the time, that was equ
by Derbasti 16y ago
That is true only while the Euro is weak.
I lived in the US when the original iPad came out. I bought it it on day one, for 500$+VAT. At the time, that was equivalent to about 350€ (strong Euro). It was later sold in Europe for 470€ (IIRC). That was when the Euro was strong in respect to the Dollar--just like now.
Right now, 550$ are about 400€. Apple will surely not sell the iPad 2 at a lower price than the original iPad, so this makes them a handsome 80€ profit on each iPad they sell in Europe and not in the States.
- mgkimsal 16y agoAre you really sure about that? 499USD = ~360EUR. A 499EUR ipad would seem to give another 193USD profit. But... do higher European taxes negate the higher price point? That was my original point. Yes, there's more revenue, but if they have to pay more (taxes, wages, etc) it might be a wash.
- Derbasti 16y agoIn contrast to VAT in the US, the equivalent taxes in Europe are only applied to actual profits. Hence, you can directly compare 550$ (price+VAT) to 470€. The difference will be reduced by a fixed percentage (19% in Germany, 7% in Austria), but it will still be a profit.