Wednesday, January 17, 2007

after the big mac index, now comes the ipod index!

jan 17th, 2007

in other words, the same thing costs 222/149 = 1.48 times more in india as compared to the US.

now apple's pricing policy may include an overseas uplift of 35%, which suggests to me that the rupee is 48-35 = 13% overvalued against the dollar.

this is a strange conclusion and would imply a future devaluation in the price of the rupee but that is not what the markets are saying.

another other possibility is that apple is ripping indians off :-(

the third possibility is that there is so much unaccounted-for/black money in india that people really don't care how much they are spending on something that has snob value.

none of these is a particularly positive interpretation.

what do you think?


AGworld said...

Apple is not ripping indians off -- the indian government is!

Remember that 30% of the price of a car in india goes to the government (in terms of excise, sales tax, vat, octroi and more).

Which is of course, spent on making madrassas or churches.

When you have the all powerful indian government to rip off indians, Steve Jobs is a nobody.

But, in all fairness, higher prices are seen in india only for niche or snob items -- things that are legitly imported and sold are very cheap.

Mobile phones in india cost, to the rupee, less than they do in singapore or elsewhere.

I bought an HP 6516 windows phone a year ago in mumbai (will bill, from an HP shop) for LESS than it costs TODAY in singapore.

And also remember that the price of goods made in india is substantially lower than that of imports. Take clothes for instance. A top quality, pure cotton two ply shirt for Rs 600-1000 (which is about 15-20 dollars) is below TJ maxx's prices.

Imports suck, though!

DarkStorm said...

I tend to agree with AGWorld here, the prices of other items are just ok here. Of course, laptops (HP-compaq or Toshiba) in India are slightly costlier than in US or Canada (because of the import duties that fill up Indian govt coffers).

Whether Apple is ripping of Indian customers depends on the following - How costlier is Apple stuff in the US than the other competitors (like HP-compaq or Dell or IBM). If Apple is selling stuff at competitive rates in US/Canada and pricing it higher in India, then it is cheating Indian customers definitely.

Let us just consider the plain simple price and apply conversion rates, keeping out the purchasing power parity.

Rajeev, you can throw more light on this, regarding pricing of Apple and its competitors.

DarkStorm said...

Apple prices here -

HP prices here -

Note the price differences? A good $300 higher.

Of course, the products are not totally similar, but Apple is known to charge more for what they offer.

DarkStorm said...

OFF-Topic -----


Regarding rajeev critique blog of the democracy chap, I do note one thing - Atleast he hasnt put up pictures of Sonia or Rahul Ghandy, but a picture of Narasimha Rao. This PM of ours has been highly under-praised.

DarkStorm said...


Not just 30%. Thats just the beginning. Thats the price you pay in the simplest of cases.

If you transfer your bike/car out of the state in which it was bought, you have to pay further taxes. I have to pay Rs 3000 something as taxes and registration charges, which I havent done yet (nor have I any inclination :-) to do so).

Now, i know its the law (law is known to be an ass sometimes). But does this law make sense? After all, you cannot drive your vehicle from one state to another without a permit, legally. Why should I have to pay to use my vehicle across the state. My country - I should have the freedom to take my vehicle wherever I wish to go..

Octroi is another stupid tax - over which the transporters have gone on strike many a times, and rightfully so. All such rules are mere devices of our secular socialist governments to fill their ministers and thulla's pockets.

Pity, BJP did not take these off during its years in power.

KapiDhwaja said...

Darkstorm, I did note that. Maybe IamForD is not all that bad. Maybe he is not all that psuedo-sec. Or maybe he might post pics of the Nehru dynasty in the future. Who knows?

Yes, as Rajeev has pointed out before, Narasimha Rao has been highly under-appreciated. One of the many things he did was to bring out the covert Indo-Israeli relationship into the open. Now Israel is the second largest supplier of defence items to India, especially high-tech stuff.

KapiDhwaja said...

"The US is trying to constrain India's Nuke program": Eminent Indian nuclear scientist.