Quinton Bronkhorst
Quinton is a journalist who comes from media background - having spent 2 years working in the audio-visual production industry as a video editor and...
CommSec’s iPod Index shows that South Africans still pay a higher price than consumers from most other countries for Apple’s products.
CommSec’s iPod Index shows that South Africans still pay a higher price than consumers from most other countries for Apple’s products.
Like The Economist’s Big Mac index, the CommSec iPod index is a light-hearted look at the pricing of a product across a range of countries, and takes prices from each country’s respective Apple store.
“Just like the Big Mac index, it may have use for currency analysis, but time will tell. And if it does prove to be a useful gauge to watch for exchange rate fluctuation it would have value for investors exposed to globally-focussed companies,†CommSec said in its 2007 report.
Since its launch in 2007, the index hasn’t seen any significant shifts in the rankings, even less so compared to the report done in 2010. While the base product, the iPod Nano (in this case, the lowest-level 8GB version) has seen a price drop, it’s the Malaysian market which has seen the biggest jump up the index, moving ahead of Australasian markets and Germany.
South Africa and Brazil remain near the bottom of the index â€" though it’s interesting to note that Brazil has not seen any price drop in the product, yet still reflects a decrease in dollar-price â€" indicative of a strengthening currency, which the index aims to gauge.
The index has drawn some criticism as it does not take into account variables such as customs tariffs and import duties â€" also note that VAT is not applied to US prices, which may distort the results â€" but detractions aside, it provides an interesting comparison of how technology is priced around the world.
| Country | iPod Nano 8GB | 2010 | New iPad 16GB Wi-Fi + Cellular |
| Hong Kong | $128.66 (HK$998) | $ 150.35 (HK$1,168) | $630.18 (HK$4,888) |
| United States | $129.00 | $149.00 | $629.00 |
| Malaysia | $141.42 (RM449) | $188.22 (RM599) | $597.85 (RM1,899) |
| New Zealand | $150.24 (N$189) | $183.78 (N$259) | $738.49 (N$929) |
| Australia | $152.21 (A$149) | $178.39 (A$199) | $693.54 (A$679) |
| Germany | $157.29 (€129) | $178.68 (€139) | $730.37 (€599) |
| Mexico | $157.53 (M$2,099) | $184.68 (M$2,349) | $717.41 (M$9,559) |
| United Kingdom | $178.60 (£115) | $183.95 (£118) | $774.80 (£499) |
| Phillipines | $178.93 (P7,490) | $193.69 (P8,790) | $716.45 (P29,990) |
| South Africa | $181.08 (R1,499) | $233.33 (R1,699) | $761.13 (R6,299) |
| Brazil | $284.09 (R$579) | $327.30 (R$579) | $907.22 (R$1,849) |
All prices taken from Apple’s official stores
Currencies calculated at exchange rates on 16 July 2012 ($1 = R8.28)
Apple is pushing its wares further into Asian markets, and with the iPad 3 set to go on sale in China soon, there will be a new comparative market introduced for the index.
Currently, the iPod Nano 8GB is available for purchase in the official China Apple store, retailing for ¥998 ($156.43), which would place it between Australia ($152.21) and Germany ($157.29) on the index.
Big Mac Index
“The Big Mac index is based on the theory of purchasing-power parity: in the long run, exchange rates should adjust to equal the price of a basket of goods and services in different countries,†according to the Economist.
The Economist’s Index paints an inverse picture, compared to the iPod Index, where countries that pay high prices for tech tend to pay less for products like the Big Mac.
The two exceptions to this are Hong Kong and Brazil â€" where the former is the cheapest on both indices, while the latter is most costly.
| Country | Big Mac price |
| Hong Kong | $2.12(HK$16.50) |
| Malaysia | $2.31 (RM7.35) |
| South Africa | $2.41 (R19.95) |
| China | $2.41 (Â¥15.40) |
| Phillipines | $2.68 (P118) |
| Mexico | $2.78 (M$37) |
| United Kingdom | $3.87 (£2.49) |
| New Zealand | $4.06 (N$5.10) |
| United States | $4.20 |
| Germany | $4.26 (€3.49) |
| Australia | $4.91 (A$4.80) |
| Brazil | $5.03 (R$10.25) |
Currencies calculated at exchange rates on 16 July 2012 ($1 = R8.28)
Relates articles
SA’s iPod prices: How we compare (2010)
Tech is no safe haven say analysts
iTunes in Asia completes Apple’s ecosystem
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