Macbooks have always been expensive, the Apple brand prides itself on its exclusivity by appearing as the latest and greatest in cutting edge technology. However, Brexit-related currency chaos has recently seen an increased price of Macbooks by £500.
Apple product users are beginning to realise that the products are becoming pricier. The 11 inch Macbook Air has been replaced by expensive laptops such as the Macbook Pros. This increase in price can also be attributed to upgrades Apple have made on the new design, released on the 27th October. The new organic light-emitting diode (OLED) screen, which allows for a screen three times thinner than a conventional LCD screen. This rising price comes as no surprise as Apple always emphasises the thinness of its design.
Customers may be willing to pay for the cheapest MacBook pro which comes to the lofty sum of £1,749, whereas the 15 inch version costs £2,699. These prices are not the result of any grand pioneering innovations, but are a consequence of the pound’s most dramatic drop this century.
This can be seen in how the price of the Macbook is converted from the price of an American Macbook, however the price has been converted into pounds, and tax has been added. Apple has been accused of manipulating the dollar-pound conversion to overcharge British customers, whereas in the past this conversion has been considered over-generous. The value of the pound has dropped significantly to the point where the price of the Macbook has increased by hundreds of pounds. For example the miniscule 12 inch Macbook model sold for £1,049 before Brexit, and post-Brexit, the price has increased to £1,249.
Price inflation cannot be linked to new technology, such as OLED screens, because the increase in price can be seen in models of Macbook which, within a matter of days, have increased in price by up to £300. Escalating prices are occurring across the brand, as the price of iPhones is set to increase substantially.
The company commented on the new price stating: “Apple suggests product prices internationally on the basis of several factors, including currency exchange rates, local import laws, business practices, taxes, and the cost of doing business.”
Other companies such as Microsoft have made comments on the economic impacts of Brexit by explaining how only an increase in the price of their products will allow the company to make the same amount of money from the British public. Microsoft has announced a potential 22 percent increase in the price of cloud products for its business customers due to currency fluctuations.
Another reason why this conversion issue is so prominent is further enhanced by a significant portion of technology-related products and services being related directly to the US market. Even if a customer wants to be billed in pounds, companies such as Amazon Web Services, carry out all of their pricing in dollars. Tech-users may have more to worry about post-Brexit than the price of the latest Macbook Pro.