Apple cuts MacBook Pro prices by $200, but not in India
Apple CEO Tim Cook speaks on stage before a new product introduction on October 22, 2013, in San Francisco.
NEW DELHI: When Apple updated MacBook Pro laptops last night, it reduced their prices by $200. The 13-inch MacBook
Pro with ‘retina display’ has a starting price of $1299 compared to
$1499 that its predecessor commanded. Similarly, the 15-inch MacBook Pro
with ‘retina display’ has a starting price of $1999 instead of $2199.
But in India the cost of the new MacBook Pro laptops is almost
unchanged.
The new 13-inch MacBook Pro in India will have a starting price of Rs 99,900, inclusive of VAT. This is the same price at which the older model is sold even though in the US the newer model is cheaper by $200.
The 15-inch MacBook Pro will cost Rs 149,900 in India. This is Rs 3,000 less than the price of the older model. But the gap doesn’t equal to $200.
However, Apple is not the one to blame here for the India-specific high price. The higher than expected price of new MacBook Pro laptops in India is due to the dollar-rupee exchange rate, which is higher compared to the rate in February this year when Apple revised the price of 13-inch MacBook Pro.
Unlike other electronics companies Apple follows a kind of standardized pricing for its products in India. Most of Apple products in India cost a little over 20% more than what they cost in the US.
In February, the dollar-rupee exchange rate was around Rs 54. The 13-inch MacBook Pro used to cost $1499 in the US. In India, the price of the same model was Rs 99,900, which was a little over 20% of the US price when converted to India rupees according to the prevailing exchange rate.
Currently the dollar-rupee exchange rate is around Rs 62. The increase in the exchange rate means that even though Apple reduced the price on the 13-inch MacBook Pro in the US it still costs the same in India because when 1299 is multiplied by 62 and an additional 20% is added to it, the price is almost similar to what used to be the price of $1499 laptop when the exchange rate was lower.
Sources say that other electronic companies like Samsung may take a hit on their profit margins due to exchange rate fluctuations in a bid to remain price competitive in the market, Apple is very particular about its margins.
Apple believes that its products are unique enough to warrant premium and historically it has always valued its high profit margins over the market share. In its last quarterly results, Apple said that its gross margin was 36.9%. For a company making consumer electronics goods, this is an astounding figure. In comparison, Samsung’s phone division has a gross margin of less than 20% while the division that makes computers has a gross margin of around 5%.
Apple did not reveal the India-specific price of new iPads at the event yesterday but using the same 20% method, it is possible to make an educated guess. If the existing dollar-rupee exchange rate continues, the iPad Air is likely to have a starting price of around Rs 36,000 while the new iPad Mini may have a starting price of around Rs 29,000.
The new 13-inch MacBook Pro in India will have a starting price of Rs 99,900, inclusive of VAT. This is the same price at which the older model is sold even though in the US the newer model is cheaper by $200.
The 15-inch MacBook Pro will cost Rs 149,900 in India. This is Rs 3,000 less than the price of the older model. But the gap doesn’t equal to $200.
However, Apple is not the one to blame here for the India-specific high price. The higher than expected price of new MacBook Pro laptops in India is due to the dollar-rupee exchange rate, which is higher compared to the rate in February this year when Apple revised the price of 13-inch MacBook Pro.
Unlike other electronics companies Apple follows a kind of standardized pricing for its products in India. Most of Apple products in India cost a little over 20% more than what they cost in the US.
In February, the dollar-rupee exchange rate was around Rs 54. The 13-inch MacBook Pro used to cost $1499 in the US. In India, the price of the same model was Rs 99,900, which was a little over 20% of the US price when converted to India rupees according to the prevailing exchange rate.
Currently the dollar-rupee exchange rate is around Rs 62. The increase in the exchange rate means that even though Apple reduced the price on the 13-inch MacBook Pro in the US it still costs the same in India because when 1299 is multiplied by 62 and an additional 20% is added to it, the price is almost similar to what used to be the price of $1499 laptop when the exchange rate was lower.
Sources say that other electronic companies like Samsung may take a hit on their profit margins due to exchange rate fluctuations in a bid to remain price competitive in the market, Apple is very particular about its margins.
Apple believes that its products are unique enough to warrant premium and historically it has always valued its high profit margins over the market share. In its last quarterly results, Apple said that its gross margin was 36.9%. For a company making consumer electronics goods, this is an astounding figure. In comparison, Samsung’s phone division has a gross margin of less than 20% while the division that makes computers has a gross margin of around 5%.
Apple did not reveal the India-specific price of new iPads at the event yesterday but using the same 20% method, it is possible to make an educated guess. If the existing dollar-rupee exchange rate continues, the iPad Air is likely to have a starting price of around Rs 36,000 while the new iPad Mini may have a starting price of around Rs 29,000.
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