Apple not to lower iTunes UK pricing after all

You may remember Apple's promise six months ago to lower the iTunes UK pricing, so it both equalled that of the rest of Europe and avoided any EU action. Well now Apple has decided to forget the whole idea. Why? Well Apple says exchange rates have done the job for them.

At the time of the original announcement, a European iTunes track cost €0.99 (74p) and a UK track cost 79p, but now Apple says the current exchange rate means a 79p UK Track actually equals €0.99, making any price "no longer necessary".

Of course if the Euro continues to rise against the Pound, iTunes may end up raising the prices for UK consumers above 79p, though the spokesperson would not confirm this, they did say they wanted pricing to remain "standardised" across all of the EU.

European iTunes customers still pay far more than their U.S. counterparts, who pay just 43p or €0.62 per track.

Source: BBC News

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18 Comments

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(hotdog963al said @ #6)
We get ripped off on everything else so why does this even matter... :suspicious:

That's the attitude to have, mister - lie back and think of England!

lol.. get used to it... all companys do this...

itunes.. in aus... $1.69 au.... per track... 1.69 au... = 1.649 usd... americans pay .99.... welcome to getting screwed!

exchange rates are completely comparitive but the euro has increased in value against the dollar the pound and the yen since the beginning of the year so i suppose you could say it's got stronger.
but also remeber that "stronger" in this context is confusing. people think a stronger currency is better. this is not the case, there are advantages to the value of a currency rising and falling.

Well Apple will get fined.

If in the USA a product cost $1000, and in the U.K. £700 and the exchange rate for dollars and pounds sterling is 2:1 then we are still being ripped, nothing to do with the dollar being weak.

Apple should think about trying to take a bigger chunk of the pc market rather than trying to give up their only chunk.

Apple systems have always been so expensive thats why windows systems are so attractive.

The exchange rate has very little to do with it. The price of doing business in your country is more expensive than it is in the US.

I don't think there's anyone who can fine them for that, after all the EU is there to make sure all Europeans get the same deal, but there's no global body like that.

(leesmithg said @ #3)
If in the USA a product cost $1000, and in the U.K. £700 and the exchange rate for dollars and pounds sterling is 2:1 then we are still being ripped, nothing to do with the dollar being weak.

Your gov't gives you more free stuff. So it equals out.

But sure, you have less choice in how you spend your money, since paying for all that that free stuff is mandatory.
Yeah for Mixed-economies!

(shakey_snake said @ #3.3)

Your gov't gives you more free stuff. So it equals out.

Which is why we pay more taxes, but the sales taxes doesn't make up the huge difference. I have yet to see one US company come up with a valid explanation for why they charge us almost double for everything.

(Shadrack said @ #3.1)
The exchange rate has very little to do with it. The price of doing business in your country is more expensive than it is in the US.

How does that apply to iTunes? Its no more expensive to send a song down the tubes to my house in the UK than it is to send a song to a person in the US.

Physical goods, I can see the reason for the price difference, the cost of shipping 10,000 graphics cards from the US to the UK by sea costs a lot more than sending 10,000 graphics cards from coast-to-coast on a truck in the USA, but the point is completely moot for digital content that has no physical transfer costs involved.

(Fourjays said @ #3.4)

Which is why we pay more taxes, but the sales taxes doesn't make up the huge difference. I have yet to see one US company come up with a valid explanation for why they charge us almost double for everything.


Your taxes are not more than ours.

If you add up all the things in the UK we shell out for, petrol (gas) yours is a lot cheaper per litre, food a lot cheaper, accommodation a lot cheaper, v.a.t. varies ours is set as one charge.

I know a lot of things varies from state-to-state, like New York is far more expensive to buy property than LA, it's the same with England, homes are more expensive in Dorset than in Kent.

I did make my point, about Apple wanting a bigger share they should treat us all equal.

(Fourjays said @ #3.4)
Which is why we pay more taxes, but the sales taxes doesn't make up the huge difference. I have yet to see one US company come up with a valid explanation for why they charge us almost double for everything.

It's more than just tax on your end, the businesses have to pay more taxes too.
That extra expense is then offset by (surprise) returning it to you the customer.

And this is all ignoring the fact things like cost-of-living and consumer price index.

The fact is it's pretty stupid to look at a currency exchange rate and then conclude that you are somehow getting "screwed".
There's just so many other factors.

Because US dollar are worth pretty much nothing right now?

I mean come on, EU should stop trying to interfere with things they shouldn't do.

umm... surely it has nothing to do with the socialist governments that make it so it is more expensive for an US owned company to do business in your country. It is probably just mean old US Apple being mean to people across seas.

umm... surely it has nothing to do with the socialist governments that make it so it is more expensive for an US owned company to do business in your country. It is probably just mean old US Apple being mean to people across seas.

That is just absurd.

1) The same rules apply to all companies whatever country they are from (For gods sake man, anyone with an ounce of knowledge of economics knows that foreign investment one of the corner stones of British industry!)

2) The US has many isolationist policies, and the govt. often favours US companies for no reason other than being American