Last month, tech giants Apple, Microsoft and Adobe were summoned to explain in a hearing the significantly higher prices of tech goods in Australia. Adobe’s CEO even went as far as dodging the questions during pre-interviews, quite expertly I might add.
Now that the hearing has already taken place, we’ve got the details on each of the companies’ reasons:
Microsoft said that its prices, which include a $2000 increase for Australian consumers for one particular software suit, was based on market competition. When asked specifically about the $2000 mark-up ($4136 compared to only $2324 in the US), the company refused to comment on it. They also said, “Our customers will vote with their wallets.”
Adobe argued that the personal service being offered to their Australian customers on their website was the reason for them charging up to 167 percent more. They also noted the costs of salaries and their investment in Australian sales channels as reasons for their higher prices.
Finally, Apple argued that the company goes to great lengths to achieve price parity with the US. Surprisingly, they weren’t too far off — the iPhone 5 and iPhone 4s are only 16 percent more expensive in Australia, and the iPhone 4 is actually cheaper than it is in the US. However, Apple did admit to much higher prices for Australians in their iTunes store, and blamed copyright holders who hold on to “old-fashioned notions of country borders or territories or markets.”
What do you think of the
excuses explanations the companies provided? Were they enough? Let us know in the comments!