Indice Big Mac

Economic Insights
Economics
October 19 2009

CommSec iPod index: Australia slips eight places
Global comparisons & currency changes
The latest update of the CommSec iPod index now covers 68 countries across the globe. Australia has slipped eight places since June and is now the 13th cheapest place to buy an Apple iPod 8gb nano music player when measured in US dollar terms. Despite strongappreciation of the Aussie dollar, the local price hasn’t changed, meaning iPods have become more expensive is US dollar terms. Australians could save as much as $20 by buying their iPods on websites in the US or Hong Kong or on holidays in those countries.

Australia slips down the leader-board
• While Australia is still one of the cheapest places in the world to buy an Apple iPod nano musicplayer, a few more countries have leap-frogged us over the past four months. It all has to do with currency movements. The Aussie dollar has strengthened against most currencies, but the local price of an Apple iPod nano hasn’t shifted. So in US dollar terms Australia has fallen eight places on the CommSec iPod index. Australia is now the 13th cheapest place of 68 countries monitored to buy an iPodnano 8gb music player when measured in US dollar terms. Back in November 2008 Australia rocketed to top spot in the CommSec iPod index. That is, it was the cheapest place to buy an 8gb iPod nano. But that prominent position simply reflected the sharp slump in the Aussie dollar against the greenback, reducing the US dollar price of the iPod. At the time it appeared that the Aussie dollar had fallentoo far and that has since proven to be the case. Australia slipped to third place in January 2009, to 5th place in June 2009 and now to 13th in the October survey. The question now is whether local prices for iPods should fall to reflect the stronger currency. It is now cheaper for Australians to buy iPods overseas in the US, Canada, Singapore, Hong Kong and Japan.

CommSec iPod nano index
8gigabytes, October 2009
$US Argentina $336.43 Malta Brazil $333.56 Spain Iceland $320.95 Portugal South Africa $283.65 Italy Hungary $278.42 Belgium Vietnam $275.56 Ireland Egypt $269.43 Germany Uruguay $265.00 El salvador Serbia $254.99 Guatamela Czech $253.29 Costa Rica Ukraine $248.00 Luxembourg Croatia $246.73 Switzerland Romania $236.65 Taiwan Bulgaria $234.34 Greece Lithuania $233.33 KoreaChile $231.68 NZ Finland $231.00 India Slovenia $231.00 Peru Estonia $230.63 Philippines Latvia $229.84 UK Norway $222.45 Thailand Austria $222.06 Australia France $222.06 Pakistan Slovakia $222.06 Mexico Denmark $219.80 UAE Russia $218.26 Turkey Sweden $214.41 Malaysia Indonesia $212.69 China Azerbaijan $210.46 Saudi Arabia Cyprus $208.63 Singapore Israel $208.50 Canada Sri lanka $208.42 JapanPoland $208.22 Hong Kong Netherlands $207.15 US Source: CommSec, Apple $US $207.15 $207.15 $207.15 $207.15 $207.15 $207.15 $207.15 $199.00 $198.11 $197.45 $196.89 $195.37 $194.14 $194.11 $194.05 $191.80 $191.75 $188.47 $188.06 $188.03 $182.76 $182.28 $179.98 $178.90 $176.65 $175.84 $175.43 $175.22 $170.22 $163.69 $162.88 $162.76 $150.68 $149.00

•

•

•

•

•

Importers & retailers facesimilar questions
• It is not just Apple that has to review its pricing in Australia – it is a question that all importers and retailers must ponder. If the Australian dollar continues to soar and local pricing isn’t adjusted, then savvy Australian consumers will weigh up the value of purchasing goods on the internet or on their holidays overseas. In Australian dollar terms the cost of an AppleiPod 8gb nano hasn’t changed over the past year. But in US dollar terms the price has lifted from US$132 to US$182 – an increase of 38
Craig James – Chief Economist (Author)

•

Produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably...