Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
1–10 of 94 posts
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#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?
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#3"This latest round of price changes doesn’t just affect the UK (customers in India and Turkey are also going to see increases).."
OK, '25 percent due to Brexit' is going to get more clicks.
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#4"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?
> "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."
Someone should probably tell the worlds biggest futures exchange that their forward rate for GBPUSD is wrong then:
http://www.cmegroup.com/trading/fx/g10/british-pound.html
Methinks someone is talking nonsense
> o what mechanisms keep the price from instantly dropping if "everyone" agrees it should be lower?
It would drop. It hasn't, because that is not what the "experts" consensus is
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#5"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?
> "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." Someone should probably tell the worlds biggest futures exchange that their forward rate for GBPUSD is wrong then: http://www.cmegroup.com/trading/fx/g10/british-pound.html Me…
Forward prices are not a predictor, they are simply based on interest rate differentials between two currencies.
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#6"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.
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#7"This latest round of price changes doesn’t just affect the UK (customers in India and Turkey are also going to see increases).." OK, '25 percent due to Brexit' is going to get more clicks.
Not really, Brexit is the proximate cause for the change in pricing in the UK (since Apple has concerns about currency instability) but that doesn't mean other countries aren't also going to see pricing changes that are unrelated to Brexit.
Apple sometimes eats the currency difference but if they think the currency value will trend down they generally don't.
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#8"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?
Are these the same financial analysts that said there was going to be an immediate meltdown post-brexit?
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#9"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?
Isn't that just the fundamental problem with financial analysts? If they were always right they could be really rich really quick. But I've never heard of that..
Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations
#10I don't like prices increasing as much as anyone, but if this gets people to stop and think before buying Apple products then I'm all for it. They have been overcharging for their products for the last 10 years.