Price Gouging for Dummies (Updated...)

Posted by Minnaar Pieters 18 Sep 2009

or: Same old, same old.

I have gone on way to much about the prices Core charges for Apple products in SA in this blog. True. But really, they just keep on flaming the fire - I have tried to start looking for positives in their current operations. I have looked for good service (and I did find it once) and I have noticed the slight dropping of prices of macbooks, even if it was old stock they were trying to get rid of. I actually thought this was a recession busting exercise, which I applauded. But then today they announced their pricing of the new iPods that were announced last week by Apple. I just want to inform my readers of these new prices.

Here is some price comparisons:

iPod Touch 64GB:
UK price: £299 (R3638)

US price: $399
SA price: R5499 ($740 or £452)

iPod Nano 16GB:
UK price: £135 (R1643)

US price: $179
SA price: R2499 ($336 or £205)

iPod Shuffle 4GB:
UK price: £59 (R718)

US price: $79
SA price: R1000 ($135 or £82)

I am well aware that you cannot make direct comparisons between countries because of import taxes and such, but these prices straight up ridiculous. Seeing as SA falls under Apple's european region, the prices comparisons might be better by using UK pricing.

If there is maybe a new tax on iPods that I am not aware of, I would very much like to be informed - in fact, please correct me if I am wrong in comparing SA and UK prices. Criticism? Please. If it is not Core's fault and in fact the SA government asking this much tax, let me know.

How much is an acceptable price increase for it to reach SA in your opinion? My opinion is that Core should not have charged more than R2000 for the 16GB Nano. This is not the way to do business in the current economy.

UPDATE: After some feedback I have gotten some import tax figures for electronic devices in South Africa. Find it here.
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I am a R&D Analyst in Stellenbosch South Africa who has a immense passion for all things tech related. I embrace technology, open source and web standards, and I participate and contribute to the social web.