Global Pricing issues. Taiwan vs USA pricing
Why is the Mac Book Pro 10% higher price in Taiwan. Apple needs to offer Global pricing
Why is the Mac Book Pro 10% higher price in Taiwan. Apple needs to offer Global pricing
The pricing is determined by such factors as exchange rates, PPP differences, markup requirements, and treaties. There is no such thing as one single global price for anything. Apple does not have control over the prices of their products in another country.
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.
Different regulations, fees and taxes lead to different prices. One obvious example, in Taiwan VAT is already included in the price. In the US, sales tax is added to the advertised price (and it's usually over 8%, too).
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.
If it’s an Apple store and not a reseller regardless of all factors mentioned they can set prices at whatever level they choose. If they have internal margin guidelines that do not allow for margin set by region then I can see that driving global price inconsistencies. I can understand 2-4% variance but not 10%.
you are absolutely correct, thanks for reminding.....
Global Pricing issues. Taiwan vs USA pricing