Windfall profits

by Volker Weber

Let's take the iPod 15 GB as an example. Sells in the US for $299, in Germany for 349 EUR. The US price excludes sales tax while our price tag includes 16% VAT so that would be 300 + tax for us. The current exchange rate is $1.27 for one EUR. Which is quite a margin.


In the UK, a 15GB iPod is ¢249 including VAT (at 17.5%). So, not as bad as pricing has been in the past.

Then again, at the moment, UK¢1 buys $1.82. That way, the new iPod is about ¢165 plus sales tax!

Ben Poole, 2004-01-07

Apple is apparentlyreviewing the UK price for the iPod mini after protests there. Hopefully this will also happen for Europe...

John Keys, 2004-01-08

Note that the international plug set for the American iPod costs something like $35 extra, which is included in Europe.

In addition, we have a two year warrantee in the EU.

Mitch Wolfson, 2004-01-09

You have to include international plug sets for your Europe market... between us all we have so many different plug standards, whereas a lot of Americans don't even leave their state let alone the country ;-)

Ben Poole, 2004-01-09

Strictly speaking: You don't have to. First of all: The iPod charges through the data cable. Second, the power supply can be connected to a regular cable.

Of course, you want one. :-)

Volker Weber, 2004-01-09

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