[jrtech]

Is it just me or is there a valid reason why the price of an iMac 17" for example is $1799 USD and $2799 CAN. These prices were taken from the Can Apple and the Apple.com sites. Now the currency converter and calculator I use tells me there is a difference of $156.53. Any comments.......or observations.....

 

[Pamela]

Because the Canadian dollar has gone up a few points in the past week. They don't change the price everytime the dollar changes. If it changes significantly then they will adjust it accordingly.

(if you're looking to buy then check out some of the other websites where you get the free 512 memory or extreme card)

 

[Chealion]

There is also shipping from there factory in the States to Ontario...

 

[gordguide]

It will take time for currency changes to "stick". There have been times when we got a deal in Canada and times when it was the other way around. Apple won't make major price adjustments until it is clear that the currency values are here to stay.

A week or even a month is not going to signal a "trend", and the balance sheets of every corporation almost always show losses or gains due to currency fluctuation.

You will find that's the case for most larger items; assuming the $C holds at it's present value, expect changes to take 2 or more months to adjust.

 

[Macfriend]

jrtech, I think you goofed on the exchange rate, which is about 48 % right now so 1800 USD is equal to 2664 CAD. Go to this site to verify for yourself: http://www.xe.com/

I would gess as Chealion does that the rest of the price covers transportation and other overhead cost.

What about a petition to have Apple install a factory in Canada? In MY province would be the best!!!

 

[iJay]

remember if you order from the US, CCRA will collect GST and PST (in British Columbia, Manitoba, Ontario or Quebec)!!
http://www.ccra-adrc.gc.ca/customs/business/importing/courier/postal/ind_gst-e.html
http://www.ccra-adrc.gc.ca/customs/business/importing/courier/postal/ind_pst-e.html

 

[jrtech]

I used the Xe.com for the difference and I realize the Can $ fluctuates, I just feel that roughly $150 is a pretty big fudge factor.

 

[Johnny]

If you were to order from a U.S. seller, consider that the amount you will actually pay will be using U.S. funds that you purchase from a bank or your credit company, with their "markup" included. My experience in buying U.S. funds from banks has included a 2.5-3.0 percent markup from the rate you would see on a currency converter.

The currency converters use a mid-market rate in their calculations. The following expanation is copied from the site you used for conversion.

"2.Are your "mid-market" currency rates buy rates or sell rates?

The mid-market rates shown in our information services are neither "buy" rates nor "sell" rates. Mid-market rates are derived from mid-point between the buy and sell rates of large-value transactions in the global currency markets.

Since "buy rates" and "sell rates" include overheads and profit margins that are set independently by each foreign exchange provider, they will vary depending on who you're talking to, and will always be different than the mid-market rate."

 

[gordguide]

We may well see price changes sooner than I had first believed. Today's news shows not only a very strong $C but also indications are that the US Federal Reserve is planning to lower interest rates in the near future. Yesterday's US jobless report was, plain and simple, terrifying for American economists (over 300,000 jobs lost) and may be signalling a recession is looming south of the border.

Should the US Fed lower rates 0.25% as many believe it will, that will trigger an even greater appreciation of the $C that week. Stay tuned; the Fed is expected to act sometime in the next 1~3 weeks.

Should currency valuations go much above the 4~5% range, I would expect a much quicker trigger of price adjustment than the 2-3 month window it would take if they hover at or below that level.

Besides the hassle (price adjustment isn't trivial) normally a business will try to create a bit of a war chest to help cover a mistake should the currency tank after a rise. But indicators are that the currency change is going to stick (eg the US dollar is falling against all world currencies, and the $C is far from the trade-weighted or price-parity level of about $US 0.80).