Sunday, May 9, 2010

iPad Profit Margins

Well here at iPad Jailbreak, we are giving away our iPads...but internationally, the prices are high!

If you are among those complaining that $499 on the low end and $829 on the high end is too much for an iPad, all you have to do to look at Apple pricing in other nations to make you feel much better. In Europe you have to plan with at least 499 Euros ($635) and 799 Euros ($1018) for the flagship model. Germany leads the pack with prices between 514 Euros for the 16 GB WiFi iPad to 814 Euros for the 3G equipped 64 GB model.

Of course, these prices cannot be directly compared to the advertised price in the U.S. Most the prices in those nine nations (Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland, UK) already include value added tax (VAT, 19% in Germany for example). Germany’s price also includes a 15 Euro ($19) mandatory copyright levy. An iPad costs at least $655 in Germany and adds up to $1038 for the 64 GB 3G version.

More on our giveaway!

Other prices include $558 – $931 in Australia, $526 – $843 in Canada, $636 – $1018 in France, Italy and Spain, $534 – $893 in Japan, $585 – $947 in Switzerland and $635 – $1034 in the UK (all prices based on currency exchange rates from Friday, May 7.) Add in the sales tax in the U.S. and you actually find that the prices are not to different from those in the U.S. However, if you were to dive deeper into those prices, you will discover that Apple has a substantially different profit margin in each country to a vastly different VAT. For example, Switzerland has a VAT of 7.6%, the UK 17.5%, France 19.6%, Australia 10% and Italy 20%. Given Apple’s far profit margins, we won’t have to worry that anyone at Apple will be starving, though.

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