Hi Charles:
Why the rhetorical question? Of course the prices will remain high as in ‘blatant profiteering’.  We Canadians are used to this, even the pre-70’s crowd.  Naturally there will be justifications (some, no doubt, creative and a few amusing).

Fortunately there are those fun filled cross border shoping trips to curb the unseemly profits.  Eh…

Terry

Common my Commonwealth buddies lets not get too paranoid

1. The US price does not include local sales taxes which can add 10% in some locations.
2. The Canadian Price includes 6% GST
3. The currency rate isn’t the rate quoted on the TV there is a conversion spread that the banks charge, 1-2% so when it’s parity its really 98c.

Companies forward buy currency to enable them to “fix” the price whenever currency goes up or down. They reprice after a period if the currency moves up or down, they dont reprice every day.

Just my 2c from downunder.....

G’dye ozpete;

Thanks for the comment, but......

1. The Canadian price doesn’t include sales taxes either, which in my neck of the woods adds another 14% to the sticker price.

2. The Canadian list price does not include any sales taxes. The 6% Goods and Services Tax is additional to the quoted price in all provinces and territories, while the provincial component of the VAT varies somewhat among the provinces. Only Alberta has no provincial sales tax, and 7% - 8% is typical, for a total tax bite of 13% - 14%. In Nova Scotia (where I live), New Brunswick, and Newfoundland and Labrador, the two taxes are “harmonized” at 14%.

3. You are correct about the banks taking their currency conversion rip… er..rake-off, which can be up to 2.5% with credit card purchases, but I expect that Apple Canada gets a preferential deal from its bankers, the currency exchange would be on the wholesale price, and likely most new Apple computers sold in Canada are shipped directly from China or Taiwan without going through the U.S., so a whole different currency exchange dynamic would obtain anyway.

As of this week, most retailers on either side of the U.S./ Canada border are accepting either dollar at par.

You’re also right about the frequency of price setting, but the Canadian dollar has been testing parity with the greenback for a couple of months now, staying pretty well above $0.95 U.S., and Apple’s prices have not been adjusted commensurately.

Charles

Hi ozpete;

Prior to the GST/HST, Canada had a Federal Sales Tax of about 14% (it fluctuated somewhat) that was applied to manufactured goods at the wholesale level and was thus hidden in the retail cost of goods.

When the Mulroney Conservative government brought in the GST, there was considerable controversy over whether it should be hidden in the price or not. It was decided not, which I think was the correct way to go.

Cross-border shopping has gone nuts in the past few days since the Canadian dollar hit par. There were two-hour waits at border crossings. This is a bit bizarre, since the Loonie has been flirting with parity for a couple of weeks, but parity was a psychological threshold crossed.

Reportedly, substantial numbers of Canadains have been shopping for vehicles in teh U.S., with savings of $4,000 - $5,000 apparently possible for some comparable models.

However, Apple Canada has been equivocal at best about honoring warranties on Apple products purchased in the U.S., and the U.S. Apple Store will not ship to Canada, although some online Apple resellers will.

And yes, about 75% of Canadians live within 160 km of the American border, and gasoline is about 20% cheaper in the U.S., so if you tank up south of the border you can almost pay for your shopping trip.

Charles