Apple index reveals iPhone price rises
New Zealanders are no longer getting the world-leading prices on Apple products they once were.
Australian researcher CommSec has been putting together an iPad and iPhone index annually for years.
In 2015, New Zealand was eighthcheapest in the world to buy an Apple iPad Air 2, at the equivalent of US$471.13 (NZ$646.53).
It was third-cheapest, when taxes were included, for an Apple iPhone 6-plus at US$785.64.
This year, it was the 20th cheapest for the iPad Pro 64GB and 27th cheapest for the Apple iPhone 7.
It is about a quarter cheaper to buy an iPhone in the United States and 5 per cent cheaper in China than it is to purchase one in New Zealand.
Australia experienced a similar deterioration in affordability, which commentators said was a sign that the Australian dollar was too high.
Infometrics chief forecaster Gareth Kiernan said it was not as simple as blaming the currency.
He said so far this year the kiwi was up 2.5 per cent against the greenback from its 2016 average.
‘‘Things have improved markedly from the 2011 to 2014 period when the New Zealand dollar averaged between US70c and US83c, and [by this measure] appeared to be 18 per cent to 21 per cent overvalued.’’
He said The Economist‘ s Big Mac index, a similar exercise showing the price of a McDonald’s burger around the world, showed New Zealand’s position relative to other countries had been consistent over recent years.
‘‘Most currencies seem to be undervalued against the US dollar – it’s just a question of degrees, and New Zealand has been less undervalued than most.’’
He said there might be an element of pricing power or reduced competition in New Zealand and Australia that Apple could exploit to charge higher prices.
‘‘Apple probably has greater brand power than McDonald’s, especially among locals who would be well-versed in good alternatives to McDonald’s.’’
Consumer writer Olivia Wannan said Apple operated a minimum advertised price scheme everywhere it sold its products. ‘‘The tech giant offers a financial incentive to companies that sell its products at the minimum price it sets – in line with what it intends to charge through the Apple website and at its flagship stores,’’ she said.