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  • Steve Jobs Gets Snippy About iPad Pricing


    This Mother's Day weekend, Apple chief Steve Jobs is being far from motherly or nurturing to ticked off Apple fans inquiring by email as to why the iPad costs so much in the UK. As the writer in the above email states, the UK's most basic iPad option starts at a price $150 higher than the comparable US version. What were sales departments thinking, the chap asked, when they priced the iPads? "It's like leeching blood out of our body..."

    Steve Jobs, however, in quite snippy fashion, simply wasn't feeling much empathy for the disgruntled Brit. And he responded with an answer that provided every bit as much admonishment as it did information. "Please educate yourself," Jobs began in reply - according to the email displayed by our friends at 9to5mac. "UK prices must by law include VAT, which is around 18%. US prices do not include tax."

    At least he said "please," right?

    Apple has been adamant about getting the word out that the high prices in the UK are not the result of Apple simply marking up the goods. Instead, the higher costs come as a consequence of notably higher taxes and shipping costs, including VAT. All told, the price of an iPad in the UK does not represent a simplistic conversion of the iPad's price in US dollars to its cost in euros.

    On Friday, Apple announced that the iPad will officially be available in international markets beginning May 28th. The first countries to get the tablet include Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and Britain. Pre-orders for iPad's international release begin tomorrow, May 10th.

    Image via 9to5Mac
    This article was originally published in forum thread: Steve Jobs Gets Snippy About iPad Pricing started by Michael Essany View original post
    Comments 41 Comments
    1. dra_uk's Avatar
      dra_uk -
      Quote Originally Posted by chansed View Post
      Yup VAT tax will soon be coming to the U.S. and everyone can expect to pay $150 more for their iPad, or about $5000 more on a $25,000 car.
      Either sarcasm or mathematics are not your strong points.
    1. redcard's Avatar
      redcard -
      Quote Originally Posted by extremzocker View Post
      its still cheaper to import one from the US, even if you pay 70 for shipping
      470 for the 64GB
      50 Shipping
      82 VAT

      I make that 602 - 3 more expensive

      Quote Originally Posted by MetallicaFan1991 View Post
      Like every other Apple product except the iPhone and iPod, the iPad will not sell well at all or sales will be slow until Apple drop the price. Here in UK that is.
      Yeah, like every other product apart from the popular ones! Nice logic.

      I have no idea why you think it won't sell well. Are you basing that on the fact you're not buying one cos of the price?
    1. vruls's Avatar
      vruls -
      i just hope apple doesnt overprice the ipad in spain but it will be expensive coz we got 16 percent of taxes
    1. eZStaR's Avatar
      eZStaR -
      Lol!!!!!!
      "please educate yourself."

      ohh snappp.
    1. Channan's Avatar
      Channan -
      But 18% of $500 is only $90. Where does the other $60 come from?
    1. thestrangestick's Avatar
      thestrangestick -
      Quote Originally Posted by Messany View Post


      This Mother's Day weekend, Apple chief Steve Jobs is being far from motherly or nurturing to ticked off Apple fans inquiring by email as to why the iPad costs so much in the UK. As the writer in the above email states, the UK's most basic iPad option starts at a price $150 higher than the comparable US version. What were sales departments thinking, the chap asked, when they priced the iPads? "It's like leeching blood out of our body..."

      Steve Jobs, however, in quite snippy fashion, simply wasn't feeling much empathy for the disgruntled Brit. And he responded with an answer that provided every bit as much admonishment as it did information. "Please educate yourself," Jobs began in reply - according to the email displayed by our friends at 9to5mac. "UK prices must by law include VAT, which is around 18%. US prices do not include tax."

      At least he said "please," right?

      Apple has been adamant about getting the word out that the high prices in the UK are not the result of Apple simply marking up the goods. Instead, the higher costs come as a consequence of notably higher taxes and shipping costs, including VAT. All told, the price of an iPad in the UK does not represent a simplistic conversion of the iPad's price in US dollars to its cost in euros.

      On Friday, Apple announced that the iPad will officially be available in international markets beginning May 28th. The first countries to get the tablet include Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and Britain. Pre-orders for iPad's international release begin tomorrow, May 10th.

      Image via 9to5Mac
      Dear God Americans are ignorant.
    1. nudge2232's Avatar
      nudge2232 -
      Aussie prices aren't much better:

      Wi-Fi
      16GB

      * Free Shipping
      * A$ 629.00

      32GB

      * Free Shipping
      * A$ 759.00

      64GB

      * Estimated Ship: Delivers by May 28th
      * Free Shipping
      * A$ 879.00

      Wi-Fi + 3G
      16GB

      * Free Shipping
      * A$ 799.00

      32GB

      * Free Shipping
      * A$ 928.00

      64GB

      * Free Shipping
      * A$ 1,049.00



      Not to mention the accessories that I just bought as well.

      After preordering the 32GB WiFi iPad + iPad Dock + iPad Case, came to A$ 850+
    1. TheOrioles33's Avatar
      TheOrioles33 -
      Quote Originally Posted by thestrangestick View Post
      Dear God Americans are ignorant.
      And dont forget it *****!!
    1. Nickaroni22's Avatar
      Nickaroni22 -
      Since when is Steve's email address public knowledge? Wonder how many people have emailed that address over the past few hours.
    1. alectra82's Avatar
      alectra82 -
      Quote Originally Posted by thestrangestick View Post
      Dear God Americans are ignorant.
      and save a lot of money on ipads too
    1. chansed's Avatar
      chansed -
      Quote Originally Posted by dra_uk View Post
      Either sarcasm or mathematics are not your strong points.
      No sarcasm and 20% of 25000 is 5000. I don't think that English is yours.
    1. hollow0's Avatar
      hollow0 -
      Quote Originally Posted by adrian1480 View Post
      maybe it's time to stop letting the CEO reply to customers.
      Or maybe people shouldn't be sending him emails and only send it to customer service.
    1. Comedy's Avatar
      Comedy -
      Quote Originally Posted by rickuk View Post
      Even after sales tax/VAT the price of the 3G 64GB in the UK is still $70 higher, and the UK has some of the cheapest delivery prices in Europe

      Must be the cost of the different power socket
      There will always be a % difference in cost so if you look at the most expensive you'll find the biggest difference.. So they still turn a profit when selling outside the u.s. And the exchange rate changes.

      The increase on the 16GB wifi version is only $30. Hardly worth worrying about if you're shelling out that much money anyway.
    1. -Blue-'s Avatar
      -Blue- -
      Quote Originally Posted by vruls View Post
      i just hope apple doesnt overprice the ipad in spain but it will be expensive coz we got 16 percent of taxes
      remember that starting june/july tax is going up to 18/20% in spain.. i'm more worried about the new iphone and movistar being a pain about it as usual
    1. adp's Avatar
      adp -
      I guess staff writers are running out of ideas. Not sure how anyone would think this is a valid e-mail.
    1. powa's Avatar
      powa -
      i think that guy got owned by steve.
    1. dra_uk's Avatar
      dra_uk -
      Quote Originally Posted by chansed View Post
      No sarcasm and 20% of 25000 is 5000. I don't think that English is yours.
      It's a shame that the quote from the e-mail was actually 18% and/or that VAT in the UK is actually 17.5%. So, in your little world does 20%=18%, or are you just too lazy to actually figure out what 18% of 25000 is? Here's a hint: it's 4500.
    1. bignighttrain's Avatar
      bignighttrain -
      This is just the way the world is, taxes els ware in the world are higher than the us import something from the uk and see how much the taxes are going to be plus import export fees get with it maybe you need to talk to apple and start producing apple products in your respective country thanks.
    1. stulaw11's Avatar
      stulaw11 -
      Face it this is what happens when you ask a stupid question.

      A simple online currency converter shows the 429 in the UK is $637. 25 US as of today's rates.

      Lets take out the VAT from the UK 429 at roughly 18%, which is 351.78. Pop that in the currency converter and its $522.55 US. So he's whining over a $23 US difference in price which is probably import fees/shipping costs?

      I think the guy emailing needs some basic math skills before blowing a nut on Jobs. I guess this UK'er has never hear of the VAT

      Apple is barely charging the UK people a penny more than the US price outside the VAT and their shipping costs or any import fees.
    1. dej4y's Avatar
      dej4y -
      Quote Originally Posted by stulaw11 View Post
      Face it this is what happens when you he's whining over a $23 US difference in price which is probably import fees/shipping costs?
      Correct!

      Some people must think when Companies import into the UK they just put on the shipping note Granny Jobs sending a "Gift" of 15 containers of iPads to my son Steve Jobs in the UK.. Cuustoms value $18.

      It's slightly more different for companies to import into the UK even on a small scale.

      You have things like:

      Administration Fee's
      Comodity TAX (P.S this can be more than VAT on some item comodity codes)
      VAT 17.5% ( oh and the VAT is charged inclusive of shipping+products value, if you do not have the shipping cost on the invoice at time of import C&E will estimate using current UK prices for shipping these goods and charge accordingly no appeal).

      So really some people need to realise things are more expensive in the UK for a reason... That reason is businesses are R-PED on importing goods.

      So the Price is fair taking this into consideration if you have to buy in the UK. I my self will be buying abroad through family members, purely because the importing is cheaper for me not because APPLE are making a Billion% extra profit on ipads in the UK... They will be making the same, if not less just to have the price adjusted fairer in countries with crap importation regulations