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Discussion Starter · #1 ·
@#$%… #$%^@!! @#%@#%^$#, $%^ $%@!#$& %! [email protected]#$^~^^!!!

I've been holding out for the new iPod revision so I could get it and not end up kicking myself for it the following week when they drop the price by hundreds of dollars with the next lineup (this has happened to me before, with my PS2. @#$%*^…).

Now I see this 15GB iPod, so lusterious, makes me drool and I'm going to end up kicking myself for getting it now, and do you know why?

If you've been following the recent rise in the Canadian dollar, you'll see it's way above normal now. Unfortunately the price of the iPod does not adjust to reflect this fact:

iPod 15GB: $399.00US or $599.00CAN

but

$399.00US does not equal $599.00CAN.

$399.00US = $540.63CAN (as of 5/19/03 at 11:14:19PM).

That's a ripoff by almost $60, and with tax it's… even more, and it's growing every day. Yesterday it was somewhere around $544. As I've been told and have mentioned, the prices won't change; at least, not until the next product revision is out. @#$%…
 

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if you are apple, it is dfficult to change prices weekly to reflect changes in exchange rates.

what happens if the cdn $ drops and apple expect you to cough up an extra $40 ?

it's just life and times in canada dealing with U.S. made products
 

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Discussion Starter · #3 ·
Guy, I know there's nothing can be done about it… it's just very vexing, that's all… >_<
 

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"Guy", i'm just making you aware of the reality of business, is all.

slamming apple when it's deserved is fair, but doing so for exchange rate fluctuations, is something Apple Canada has absolutely NO control over

you might as well complain about construction on the city streets and how it slows down traffic
 

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Very vexing, considering they bumped prices up quite quickly when the Candian dollar was dropping. But Apple is a business and their goal is to make a profit.
 

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Discussion Starter · #6 ·
Ugh, you misunderstand. I wasn't dumping on Apple. I understand they need to make money. I'm just not happy about the situation. Just bad timing, I understand.
 

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iCon, sorry bout you taking that I misunderstood you, I did understand you, but ASCII tends to not show agreement very well.
I was just pointing out for anybody reading that Apple is a business, but oh well, this is Canada where free speech is still allowed, and go right ahead and use it! *cheers on iCon*
 

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This doesn't help anyone outside of southern Ontario, but there is an Apple retail store in Buffalo. I wouldn't go down just to save $60 but if a trip is in the cards, I would take advantage...
 

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Have you seen the price of gas, going to Buffalo will save you... what $20 bucks and a day.

You 'Guys' sound like my Wholesale Art customers. No one is willing to pay extra when the dollar is bad and I am lossing money, but they all line up the second it becomes strong and they can cash in....


I think this ticks me off the same way as the exchange ticks iCon off .... only different.


In the end I AM CANADIAN

And there-in is the core of the problem.....


:( :(
 

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When the Canadian dollar changes a half a cent to cent in a day, I think everyone has a hard time keeping up with it. Apple could do a little better keeping up with the exchange rate, though. I don't blame them for being a month behind on products, but being months behind on products, like the PowerMac, is unexcusable. They seem to only change the price when they intro a new version of the product.

Of course there is the downside that any retailer who has inventory is losing money due to the exchange rate.
 

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If Apple Canada was in fact Apple Canada - I would see the issue ...but they have to BUY from the states and have to include a mark up to handle the product... stuff happens...relax enjoy the springtime - and it is only 60 bucks! A cheap price to pay to live in Canada.

If you are on fixed income why are you buying an iPod for? ;)

Relax. It is the price we pay to live here.

Chances are you will have to pay a tad more for everything - our dollar is weaker than our neighbours - but we tend not to get gunned down in a drive by or by disgruntled postal employees. And if we do relax ...hospital care is paid for (well sort of!!)

 

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Apple really can't do much about the currency variables; and since things are still moving worldwide they, like everybody else, have to wait a while and see where things are going, and how "sticky" the revaluations will be.

I've said it before on ehMac that according to the usual economic calculations, the $C is worth about 80cents $US. The fact that currency traders have valued it less has more to do with the US dollar than the Canadian dollar.

What economists will tell you is that even though it's really worth about 80c, there is now way to tell when, or even if, it will go to that level. What they will say is that, over time, it will move towards that level. The time period could be weeks but most often it's years or even decades; it points to a trend.

Although we haven't heard it "out loud" yet, it's my personal opinion that the SARS crisis has prompted the revaluation of the US dollar towards more realistic levels. Why do I believe this?

Because for the last decade, the Central Banks of Japan, South Korea, and a few other nations have actively interfered with the US dollar's value whenever it fell; to keep their own currencies worth less. A cheap yen (or Canadian dollar) makes exports cheaper in the US, and that drives the local economies. Even as the US dollar has fallen, the Bank of Japan has spent literally hundreds of millions in the last two weeks to make the fall slower.

SARS changed the economic outlooks to the point where the Asia-Pacific economies cannot afford to spend money (by buying US dollars) to the same extent as before. This slight lack of support is evident by the fall of the US dollar over the last month against virtually every world currency. What this also implies is that without any support from the Bank of Japan, the US dollar would be worth even less than it is now.

SARS and the resultant rise in the yen is threatening to drive Japan into the recession it's Central Bank has been fighting for a decade.

But, it also illustrates the problem for Apple (and most any company). They know the value of the currencies are artificially manipulated by Central Banks, and they don't really know how those agencies will react in the future. So, just because we know what the US dollar is really worth, there is no way to predict how it will move in the near or far term, because the changes are manipulated (from the natural, or theoretical levels) daily.

Also, it's just as likely that the fall of the US dollar will lead to price increases, not decreases. iPods are paid for in Taiwanese currency by less valuable US dollars; with regard to computer hardware it's really all three currencies we have to account for.

Virtually every hardware device Apple sells will cost more, because they will have to pay the Taiwan factories more US dollars for the products they currently manufacture. Paying $C 60 more for an iPod now may not seem so bad if Apple finds it must raise the price in the US by $US 60 when it does do it's currency-based adjustments. Whether we will see any reduction at all (due to a more valuable $C) is not even close to being determined yet.

My advice is to use your judgement, and pay whatever (and whenever) your instincts tell you to. Although it's possible to win with the currency gain, consider that major corporations and banks with much more information than we have, can tell you it's far more common for them to lose than win.

The bad news is that if the $C stays at current levels, many thousands of Canadians will lose their jobs. As yourself this: if a cheap currency is such a handicap, why does virtually every government spend money to prevent their own currencies' rise?

It's because they want the export-driven jobs, and they know that when apples and boxes of tea cost each consumer less, that saving can be applied to such things as an extra $C60 on an iPod every once in a while, and consumers are still ahead.

They also know that the low currency numbers are a percieved annoyance to ordinary citizens; people tend to believe that a fall in the local currency actually means they have lost wealth.

What it really means is that it alters the profits of exports and costs of imports; it has much less effect on what happens when one Canadian buys or sells to another Canadian. Thus, a low currency creates local wealth, and a rising currency reduces our national income. These two factors account why we haven't seen the Bush Administration publicly reveal that it is secretly happy about the falling US dollar.

[ May 20, 2003, 02:57 PM: Message edited by: gordguide ]
 

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On the other hand, if you are or know a student you could purchase it and pay $549 and tax through the online edu store.

As to the exchange rate debate, Apple's policy as near as I can tell from 10 years of watching prices yo-yo all over the place, has alwasy been to peg a new hardware issue at the going exchange rate (often rounding up by $25-50 to a "round" number") and then leave it.

It is not true that they raise prices after a new piece of hardware has been released up here to reflect the exchange rate (at least I've never seen them do it). Rather, as soon as the next upgrade/speed bump comes out, the newe price reflects the current exchange.

Needless to say, I'm very much looking forward to the price that the new 970 towers are going to go for. When the last set of towers was released, the $ was around .64 US I believe. At this rate we may be pushing .80 by the time WWDC rolls around.
 

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The cost of living exchange rate (calculated by determining the price of a basket of goods in various countries - not the fluctuating currency exchange rate) is supposedly C$1 = US$0.85. This "affordability" index suggests that once the interventions are priced out, the Canadian dollar has another 10 c to rise. If that occurs over the next 6 months, it is surely going to dampen the Canadian economy and cause significant unemployment. There's not too much the Feds can do about it except reduce interest rates but that has down-sides too (and is part of the reason for the significant under-funding of pensions here and in Europe).

As for Apple, I doubt we'll see cheaper Macs in C$, rather, our American buddies are likely to see (relative to us) more expensive Macs south of the border.
 

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Yes, and there are a few other ways to compare currency values from one nation to the next. The Purchase Paritiy method gives us about $US 0.80 (it's the one I favor) and the famous Economics Magazine Burger Index (compares the price of a Big Mac in each nation) gives a lower number ($0.74); while a pure trade-weighted figure is just under $0.76. A figure of $US 0.85 or perhaps any other basis could be just as valid, since we do know that few, if any, currencies trade at what the theoretical models say it should.

The real problem with these indexes, and using them to try to predict a currency movement, is that they don't indicate when a currency will move; and at which point (overvalued or undervalued) the movement will stop. So, you are right in that it's possible it could go to 85 or even higher; it's just that it's equally likely it may fall again to 70 or below.

Aside from artificial intervention, there is the preference of US dollars in many nations as a shadow currency, and foreign investment levels in the US (which raises demand for dollars, but doesn't exchange any goods); just a few of the factors that distort currencies, but which are unrelated to trade of goods and services.

Many factors that go into an Inflation/CPI index, however, are considered "not tradeable"; thus the other methods to account for that. Each one tries to compensate for variables in a different way.

An example of a non-tradeable good that appears in CPI indexes are rents; real estate cannot move from one nation to the next.

[ May 21, 2003, 01:55 PM: Message edited by: gordguide ]
 
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