iPod Prices Around The World

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Apple has been roughly selling over 50 million iPods annually for the past four years. Apple sells iPods across 103 countries (officially through the country’s individual Apple store page). They come in different sizes, capacities, colors and most importantly prices. Since an iPod nano (8GB), is the same product in all countries, shouldn’t it be priced closely?

Our Assumptions

The assumption here is that there are no transportation costs (very hypothetical) and trade flows freely across all borders (i.e., no tariffs). It is fair also to assume has a significant market share and monopoly power all over the world in mp3 players, so demand shouldn’t affect the price as much.

Note: All prices indicated are exclusive of taxes. The exchange rate used is the average nominal current rate.

Canada is USA’s biggest trade partner, and yet the iPod isn’t comparatively that cheap.

The next step would be to find out what are the sources for the price differences, create a Purchasing Power Parity index using the iPod and compare it to the World Bank’s estimates. This can be found here.

iPod Prices Around The World

The Americas

  • USA – $149
  • Canada – $163 (C$159)
  • Puerto Rico – $149
  • Argentina – $365 (1499 Argentine Peso)
  • Brazil – $207 (R$ 329)
  • Mexico – $167 (1972 Mexican Peso)

The iPod is the cheapest in the USA

Europe

  • UK – $166 (£103)
  • France – $179 (€125)*
  • Spain – $179 (€125)*
  • Italy – $184 (€128)*
  • Germany – $182 (€127)*
  • Switzerland – $190 (CHF 160)

The iPod is the cheapest in the UK

*In Spain, an iPod costs €159 (incl. €34 tax), in France €169 (incl. €44 tax), in Italy €169 (incl. €44 tax), in Germany €159 (incl. €32 tax)

Asia-Pacific

  • China* – $164 (1067RMB)
  • Hong Kong – $157 (1228 HKD)
  • Japan – $163 (¥13143)
  • Korea – $168 (₩181,786)
  • Australia – $172 (A$163)

The iPod is the cheapest in Hong Kong

*China manufactures iPods

Africa, Middle East & India

  • Israel – $234 (799 ILS)
  • South Africa – $185 (1249 Rand)
  • India – $224 (10,000 INR)

The iPod is the cheapest in South Africa

Prateek Agarwal
Prateek Agarwal
Member since June 20, 2011
Prateek Agarwal’s passion for economics began during his undergrad career at USC, where he studied economics and business. He started Intelligent Economist in 2011 as a way of teaching current and fellow students about the intricacies of the subject. Since then he has researched the field extensively and has published over 200 articles. If you have any questions, comments or suggestions, please email me or connect with me on LinkedIn - https://www.linkedin.com/in/prateekgrwl/

5 thoughts on “iPod Prices Around The World”

  1. Interesting data and pretty exciting to see Ipod’s coming closer to Mac Index for comparing different countries taxation / price parity…..like to mention one interesting book name i.e. “World is Flat” by Mr Friedman here ….as from Mac age to Ipods age world actually looking pretty flat now….

    Reply
  2. Hi. Just some thoughts I had reading this. 🙂 Where have you sourced the data from?

    Also, why not also factor in customs duty rates (which I assume are excluded given the assumptions)? If you were to do so, it would give perhaps a more accurate representation of the price discrimination that Apple undertakes across jurisdiction.

    It would also be interesting to see the size of markets (say in terms of size of target audience or even the number of Pods sold annually) and the levels of competition (the availability of substitute products) that prevail in these countries for the IPod. Instinctively, I would say that the big market size and the high level of substitutability in the US market would explain the prices there. But of course, I don’t have the data to back it up.

    Very interesting work though. Keep it up! 🙂

    Reply
    • I got it from the apple website, you can choose what region and then look at the prices and they indicate how much tax/duty has been added
      I was going to bring in the tariffs, duties etc next, I did this to see if there was huge difference in prices or not (<$30-40)

      You can assume size of the market wouldn't matter, because Apple has a monopoly powers and has been able to charge what price it wants. But then, yeah the demand could also explain the price, but if Apple has a monopoly then it would set the price.

      Reply

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