# Price comparison: "iPod USD vs. iPod CAD"



## stand_1998 (Aug 13, 2003)

Why are iPod's expensive in Canada?

From www.apple.com : 
10GB $299.00
20GB $399.00
40GB $499.00

From www.apple.ca : 
10GB $439.00
20GB $579.00
40GB $729.00

Use www.xe.com to convert the USD into CAD to get:
10GB $392.20 VS $439.00 = $46.80 difference
20GB $523.38 VS $579.00 = $55.62 difference
40GB $654.56 VS $729.00 = $74.44 difference

The iPod purchased in Canada is more expensive than the iPod purchased in USA using Canadian converted funds.

Why is the American iPod cheaper than the Canadian? The fluctuating dollar value will affect the difference, BUT I recently stumbled on an article that might shed some light on this issue.

URL for the full article: http://www.wired.com/news/politics/0,1283,50995,00.html

"Makers of MP3 players would pay $21 in fees for each gigabyte of memory available on their devices, raising the cost of devices like Apple's iPod by more than $100."

I heard rumors about CD-R taxes, but never believed them as the pricing is still very inexpensive. I didn't realize that MP3 players might be taxed as well.

I don't know if the tax was ever passed (the article is dated Mar 12 2002) but if it were true then the 40GB iPod would cost Apple $840 in taxes!!!

Apple products are generally cheaper when purchased in USD, even with the exchange, but I'm sure that some taxing system must also add to the difference in pricing of the iPod.


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## howing (Nov 14, 2003)

i've noticed that long ago.. that's why i decided to buy in the states, then get my tax refund!

no tax + cheaper prices! 

just drive to buffalo... their student discounts are much higher than the discounts here!


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## james_squared (May 3, 2002)

Hello,

You can read about the proposed and current tariffs at the Canadian Private Copyright Collective.

James


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## Hankman (Sep 26, 2003)

Howing,

How did you get a tax refund? Is this the NY State taxes you got back? Is there a customs form you fill out at the border? I am asking as I may be going to the Apple Store at the Walden Galleria in Buffalo this weekend.

Thanks
H


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## Sandy McMurray (Jan 10, 2003)

Canadian prices are not calculated daily based on the exchange rate.

Typically, international prices are set when U.S. products are introduced. Those prices stay the same until/unless the U.S. price is adjusted or exchange rates make a major move.

SMc


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## imactheknife (Aug 7, 2003)

HMMM is that why I never buy NEW in CANADA?? I always try and buy from local swap lists or of course in the US if the exchange is good....the Canadian Gov't is a bunch of greedy neandrothols that will tax everything as long as they can vote themselves a raiser over thier current $250 000 a year salary for doing jack-all...I support local resellers, but not the canadian gov't when it comes to taxes...sorry if that offends anyone..just my personal beef about why we contiune to get ripped off...I thought the pierre days were gone (petro- canada....pierre elliot trudue rippes off canada?  )


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## mojoprofilms (Nov 17, 2002)

Now when the new imacs came out in September, the price for the newer model stayed the same in the States as it had been for the old one, but in Canada it dropped from $2799 to $2499. I presume that was because of the stronger exchange rate.


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## kloan (Feb 22, 2002)

hmm.. i have mixed feelings on this one... shopping in the US instead of buying from here in Canada only (indirectly) affects our economy if instead of buying in the US he were to buy in a local (canadian) reseller... what if he were to order from apple's website? that's not giving any money back into the canadian economy...that's going directly to apple, in the US... we also can't set our prices based on the value of the american dollar, just doesnt make sense. we have our own dollar and our own economy... best just to ignore their pricing...

our tax system is WAY outta wack, and i think more than enough people in our country feel that way.. many words do come to mind, greed is not one of them... id say its more like mismanagement...


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## PosterBoy (Jan 22, 2002)

Since Apple Canada is a wholly owned subsidiary of Apple Computer Inc, and operates within Canada and abides by Canadian rules, buying from Apple.com/ca/store/ does give a little bit back to the economy.

What I find interesting about this is that everyone gets up in arms about spending an extra 50 bucks on an iPod, but no one ever mentions that we pay much, much less for cars than the Americans do.

You guys do realise that our economies are separate, right?

--PB


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## PosterBoy (Jan 22, 2002)

*I don't understand them setting prices at one level when the exchange varies so much week to week. *

Because if a person sees an ad for an iPod priced at say, 400$ when the dollar is high and then they are confronted with a price of say, 450$ when the dollar drops the next day, they aren't going to buy it.[1]

People want stable prices, and Apple wants steady sales, it is pretty much as simple as that.

--PB

[1] These are of course extremes to illustrate my point, but the point is not any less valid if the price were to change by say, 10 - 20 dollars.


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## jfpoole (Sep 26, 2002)

Doesn't most of the money from an iPod sale (heck, from any sale of Apple hardware or software) go back to the US anyway? 

That doesn't mean I don't like buying from my friendly neighborhood Mac dealer (I do!), but I've never really thought of the "support-the-Canadian-economy" argument as a compelling reason to do so.


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## (( p g )) (Aug 17, 2002)

Think about what you're saying. If I own a shop that sells Apple equipment here in Ottawa, how long do you think I would stay in business if "all the money goes make to the US anyway" (or something to that effect)? The margins are razor thin, make no mistake about that, but you have to give businesses a reason to exist, or else they leave. That's just a cold hard fact. 

Now let's talk about this difference in price. Is it the government's fault? No. The copyright levy has yet to be applied to hard drives (and iPods). They're considering it, and if they get their way, rest assured, the price difference won't just be a matter of a few bucks. The reason for the price spread is thus: Apple tends to price their products in USD and then sets prices only once for other countries (i.e. Canada), based on the exchange rate at the time. Is it fair? No. And as a consumer and Apple client, you should let them know how you feel by sending them an email.

But driving and hour or two (or three) to the US and back just so you can save $20 on an iPod strikes me as incredibly daft.


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## (( p g )) (Aug 17, 2002)

jfpool that has to be the funniest avatar yet!
LOL!!!!!


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## K_OS (Dec 13, 2002)

Cheaper iPods @ Canada Computers 

I just posted this and found this thread afterwards looks like Canada Computers did what some of you wanted, the prices are closer to the current conversion than whats on the Apple site.


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## stand_1998 (Aug 13, 2003)

So after all of that research that I did, I ended up buying privately!

I hope that by next Friday I will be the proud owner of a brand new 2nd Generation 10GB iPod (still sealed) along with all of the goodies!

Buying retail was just out of my price range, so I decided to look around and I found this beauty.


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## howing (Nov 14, 2003)

pick up a form from the customs, forgot the name of it... because you're not a resident there, the tax can be claimed back for large purchases ($50 or more). 

you owe nothing to the US, so you shouldn't have to contribute to their taxes.. it's only fair you get it all back. 

i got every one of my purchases back. 
tax free + lower pricing + better education prices... all for just a 2 hour drive...

sounds good to me!
u can check out the cool Apple stores they got down there while you're at it too... there's none (yet) here.


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## ehMax (Feb 17, 2000)

Why don't you move there then.  

You may owe nothing to the U.S. but *YOU DO* owe something to Canada. 

Tell me, is the government being greedy, or is the greed going over the border to save a few bucks?

Sorry if that offends anyone. 

Duty at border - gas - time - pooping on Canadian economy.... all to save a few dollars.









Sounds crappy to me!










This is ehMac, not U-S-eh.


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## Roland (Aug 15, 2002)

Why doesn't Apple have prices calculated on an exchange rate basis? Like placing a bid on eBay Canada and seeing the US price with the Canadian conversion below it?

I don't understand them setting prices at one level when the exchange varies so much week to week.


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## jfpoole (Sep 26, 2002)

PGant,

I guess the point I was trying to make was that if someone's decided to buy an iPod from the States, then I'm not sure the argument that they're taking money out of the local economy and hurting local Mac retailers is going to carry much weight. After all, if they're going elsewhere to buy an iPod, I don't think they care all that much about the local Mac retailer (since they're not shopping there anyway).

Oh, and I'm glad you like my avatar! I found it on the web all by myself!


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## Bertrand (Fr) (Nov 14, 2003)

Hello,

We have the same problem here between USD and EUR, the change is not very good for European. Some USD seems to appear in transaction.

About iPod have you seen this : 
Bluetooth audio transmitter


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## Heart (Jan 16, 2001)

Everyone makes money on the sale of one item.


Apple US > Apple Store US - Consumer

Apple US > Apple Canada > Apple Reseller - Consumer

or 

Apple Canada > Apple Canadian Distributor > Apple Reseller - Consumer


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## imactheknife (Aug 7, 2003)

It seems to me I offended someone again...ooops..but like I said..I like dealing in Canada eg) ehmac swap list.. my point made...it's still in Canada and it's your website. I just don't pay tax on items here because it's privately done..is there a problem with this???...I buy in the US if I can't find what I want in Canada for a reasonable price..and of course I am like most other Canadians and hate to pay tax....how many people would rather have that extra grand a month in thier pocket than the governments?? I support my community just fine..thank-you, I just try to pay as little tax as possible so I can use it for something else more productive than what the gov't uses our money for these days anyhoo


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