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Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

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Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#41

Post by misnome »

dazc wrote: post #38
misnome wrote: post #28

Earlier quoted context omitted.

Different countries change over time for different reasons, and Apple tends to change them in bulk. Are you arguing that the massive drop in the pound isn't due to Brexit? As far as I'm aware even the most rabid Farage-fanciers don't argue that, but argue it's a good thing (Cheaper exports! As though we don't import most of the raw materials, but that's not as snappy).

I was stating the headline was somewhat sensationalist given the statement from Apple was pretty vague. Where you get me arguing about the massive drop in the pound I don't know?

> Where you get me arguing about the massive drop in the pound I don't know?

Because, Apple has changed it's prices because of the drop in the pound?

The pound dropped because of Brexit.

You said that Brexit wasn't the cause of the price change.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#43

Post by [deleted] »

jstanley wrote: post #6
tveita wrote: post #2

"While critics might note that Apple’s price increase is greater than the pound’s loss in value, financial analysts predict that the market still hasn’t fully priced in the cost of Brexit — that is to say the pound still has further to fall." So what mechanisms keep the price from instantly dropping if "everyone" agrees it should be lower? Market inefficiencies? Or lots of money betting on an upswing?

The market has always priced in all of the information that is available to its participants. The "financial analysts" are talking nonsense basically. If they're so sure it's going to drop further they should short the pound now, as much as they can. That in itself would cause the pound to drop, and then whatever effect they're predicting would be priced in.

[deleted]

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#44

Post by croon »

misnome wrote: post #18
camus2 wrote: post #16

Earlier quoted context omitted.

Apple is full of it. 5/7 years ago it was cheaper to fly to New York from Paris, buy a Macbook Pro there and come back since the dollar was pretty low. And you still had money left! Of course they don't care about the exchange rates when they can charge the same price NUMBER in Euro and in Dollars despite the difference. They also overcharge for UK, the "localisation cost" excuse doesn't fly here. I'm glad time have…

Really? Exactly when was that the case? I know that dollars = pounds/euros is usually how it works, but the disparity is never quite as large when you consider both the currency valuations and the fact that the price never includes tax.

I can verify the claim, but can't point to specific years. That was however not specifically Apple, but merely electronics in general. I used to import hardware parts through an American friend when he came to visit because it was so much cheaper, and I would say it was more than 5 years ago. Now the difference is negligible.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#45

Post by TillE »

gaius wrote: post #30
andyjohnson0 wrote: post #26

Earlier quoted context omitted.

> and a US-UK trade deal is likely very soon The earliest that this can happen is 2019, when the UK ceases to be a member of the EU. And since EU rules prohibit members from negotiating their own trade agreements, its probably going to be 2020 or later before a deal is signed.

Not true. Article 50 stipulates the maximum negotiating period, not the minimum. T-May could quite legally declare Article 50, negotiate for a day, then join NAFTA the day after...

There are many many thorny issues to be untangled. It's not as simple as saying "we're leaving"; Britain's membership in the EU is a complex thing that's going to take a lot of work to dissolve. The Article 50 negotiations are about those issues, not a future trade deal.

If you just walk away, you leave a mountain of chaos that would have to be handled in courts.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#46

Post by dazc »

misnome wrote: post #41
dazc wrote: post #38

Earlier quoted context omitted.

I was stating the headline was somewhat sensationalist given the statement from Apple was pretty vague. Where you get me arguing about the massive drop in the pound I don't know?

> Where you get me arguing about the massive drop in the pound I don't know? Because, Apple has changed it's prices because of the drop in the pound? The pound dropped because of Brexit. You said that Brexit wasn't the cause of the price change.

You seem determined to draw me into an argument?

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#47

Post by gaius »

TillE wrote: post #45
gaius wrote: post #30

Earlier quoted context omitted.

Not true. Article 50 stipulates the maximum negotiating period, not the minimum. T-May could quite legally declare Article 50, negotiate for a day, then join NAFTA the day after...

There are many many thorny issues to be untangled. It's not as simple as saying "we're leaving"; Britain's membership in the EU is a complex thing that's going to take a lot of work to dissolve. The Article 50 negotiations are about those issues, not a future trade deal. If you just walk away, you leave a mountain of chaos that would have to be handled in courts.

Sure, but it takes two to tango. The EU can't force the UK to wait two years because the UK can simply walk away. This is a loophole that the writers of Art 50 didn't consider.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#48

Post by spuz »

simonh wrote: post #21
tveita wrote: post #2

"While critics might note that Apple’s price increase is greater than the pound’s loss in value, financial analysts predict that the market still hasn’t fully priced in the cost of Brexit — that is to say the pound still has further to fall." So what mechanisms keep the price from instantly dropping if "everyone" agrees it should be lower? Market inefficiencies? Or lots of money betting on an upswing?

> ...Apple’s price increase is greater than the pound’s loss in value... It's 5% more than the pound's loss in value next to the Dollar. But bear in mind that for the last 6 months Apple has simply swallowed a 20% reduction in their (and developers) UK App Store revenue. Look at it that way and we in the UK have enjoyed subsidized prices for most of the last year.

If that's true it would suggest that Apple are not in fact basing their price on expected further devaluations of the pound vs the dollar. So either they don't expect the price to fall further, or they do expect it to fall further but don't want to burden their UK customers with even higher prices at the moment.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#49

Post by andyjohnson0 »

gaius wrote: post #30
andyjohnson0 wrote: post #26

Earlier quoted context omitted.

> and a US-UK trade deal is likely very soon The earliest that this can happen is 2019, when the UK ceases to be a member of the EU. And since EU rules prohibit members from negotiating their own trade agreements, its probably going to be 2020 or later before a deal is signed.

Not true. Article 50 stipulates the maximum negotiating period, not the minimum. T-May could quite legally declare Article 50, negotiate for a day, then join NAFTA the day after...

Theoretically true, but extremely unlikely in practice.

As for the UK joining NAFTA: politically impossible.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#50

Post by dragonwriter »

rrggrr wrote: post #13

Eurozone debt-to-GDP: 92%. This is BEFORE one considers (a) member country debt, (b) troubled bank liabilities which EU must backstop (eg. Deutchebank), and (c) immense social, security and defense costs which EU nations must incur due to recent global events. By contrast UK debt-to-GDP: 90% and falling, and a US-UK trade deal is likely very soon. I'd rather own Sterling.

> a US-UK trade deal is likely very soon.

Sure, right after Mexico sends a check for the wall.

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