Global Pricing issues. Taiwan vs USA pricing

Why is the Mac Book Pro 10% higher price in Taiwan. Apple needs to offer Global pricing

Posted on Jul 10, 2020 8:41 PM

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6 replies

Jul 10, 2020 9:21 PM in response to dirtstar59

I'm sorry but your understanding of international business is incorrect. If the US price of something is $100.00 USD and the exchange rate for another currency is 1.6, then in that country the price is 160.00 units before any other add-ons are considered such as shipping, inventory, duty, etc. that may raise the price to 180.00 units, more or less. The "real" value differences between countries may be seen in the PPP of two currencies, also sometimes referred to as the Big Mac Index. But that doesn't account for market price differences.


Apple Stores in the US are controlled by Apple. They sign agreements in which the store cannot sell an item for any price different from Apple's MSRP. Resellers are not so controlled so they can set lower prices by reducing their margin and not covering warranties. This is done to compete with the higher prices in Apple Stores. But they are not approved by Apple. Furthermore, resellers are often getting inventory through gray markets because they cannot buy directly from Apple.


Do some more research so you will understand better how supply chains work on a global basis.


Jul 10, 2020 9:29 PM in response to Kappy

I live in Taiwan and have been involved in international supply chain for over 20 years. If something is priced $100 in the USA but it is sourced outside of the USA then the price set for regional distribution is not based on the USA price. It is based on the internal price from Apple for sale globally to regions. That may be in USD it might not be. If Apple has a store in Taipei and they manage the Taiwan Apple store online then they are managing the pricing in Taiwan. Yes, many factors affect the final internal product price to the regional store, duty, exchange rate (however I am sure Apple has massive hedges in currency to mitigate currency effects), operational overhead, etc. In the end it is their prerogative to set the price as they see fit. However when global store pricing in easily compared it can be very frustrating to see massive discrepancies.

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Global Pricing issues. Taiwan vs USA pricing

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