By Graham K. Rogers

There has been some criticism of different pricing levels in countries outside the USA. In Australia not so long ago, an enquiry was set up to look into the reasons why some of the large international corporations charge more in certain markets. A comparison of the prices between US and Thai online Apple stores, allowing for taxes, also shows some surprises.

Not long before the local heads were to speak before the committee in Australia, Adobe adjusted certain of its prices, but the representative was still not fully able to satisfy the panel. Likewise, Microsoft's Australian M.D., Pip Marlow, seemed to fudge some responses and in the end may not have presented the best case, especially with the widely reported comment that it "sets local prices based on what buyers are prepared to pay" (Allie Coyne, IT News)

While Tony King from Apple was also present, the answers he gave satisfied some of the reporters of the event but overall there were still questions (Sharif Sakr, Engadget). There are clearly differences in pricing worldwide. We have been aware for several years that when Apple announces a price, that is the US price (Apple is a US company after all) and that, following normal practices there, there may be state and local taxes to be added on before any item is delivered to a customer.

Rules (and taxes) are different in Europe where the rates of VAT (Value Added Tax) are much higher, reaching 20% or more, while state taxes in the US have been around 6 - 7% in many places for a number of years. Depending on the specific country, there may also be import taxes to be levied. Trying to find a one-price-fits-all picture is therefore impossible.

As I live in Thailand (and use Apple's Online Store from time to time), I have occasionally compared prices between this country's store and the USA. A further factor is currency which fluctuates day by day. While Apple does adjust prices to allow for such alterations, this is not a daily occurrence.

To try and provide a better comparison, I have examined the prices of some of Apple's main products. The table below begins with the US price which is converted to baht, and then adds 7% to that, with the Thai price then alongside. Differences are shown in the final column.

For example, the basic MacBook Air (11", 64GB storage) has a price of $999 in the US Store, which is 29560 (a drop from an earlier amount just above 30,000 baht). Adding 7% to the US price in baht, gives a figure of 31629.64. That same unit is 31,900 baht, which is an (acceptable) 270 baht over the US price.

Allowing for transportation, any import duties or other costs, that figure seems to be a reasonable price for the computer. While I was satisfied with the first results, as I went on I was less happy. Some higher prices cannot be explained by currency differences as the Thai baht is currently rising, not falling, so there may be room for adjustments.

Technical specifications for the US and Thai products are the same. Decimals are rounded up or down to the nearest whole number. As pricing of the iPhone may depend on carrier contracts specific to any country, I omitted comparisons of this device.

Most of the prices were within an acceptable range. While prices for the MacBook Air and the MacBook Pro did not differ significantly, the MacBook Pro 15" 2.7 GHz with Retina display, as well as all of the Mac mini range and the iMacs, showed differences ranging between 1035 - 3609 baht (iMac 27" 3.2 GHz). The 27" Thunderbolt Display also showed a hefty difference. Two products showed a negative difference: the 11" MacBook Air, 128 GB and the Airport Extreme base Station are apparently cheaper here.

The discrepancies do not appear consistent: these are not related to device size, or to weight. The cause cannot be because of currency rates as the Thai baht is strong currently, meaning the Thai exports are more expensive, so imported goods ought to be cheaper. One appreciates that Apple does not adjust the prices daily - that would be impractical, except in the case of a massive fall (or rise). There may be room for some maneuver here.

Graham K. Rogers teaches at the Faculty of Engineering, Mahidol University in Thailand. He wrote in the Bangkok Post, Database supplement on IT subjects. For the last seven years of Database he wrote a column on Apple and Macs.