RSSThe Korean iPod, now 30% more expensive!
By Tim Conneally | Published March 16, 2009, 1:18 PM
The Korea Times reports that the price of Apple's iPods will be increased in Korea due to the diminished value of the Korean won.
The international exchange of currency has had a varied impact on the tech industry recently. In January, for example, Nintendo had to tune down its 2009 revenue projections because the Yen increased in value, thereby devaluing exports by a fraction when weighed against the softening dollar and euro. Korea's currency has slid down from about 1,100 on the dollar to the neighborhood of 1,500 on the dollar.
Apple is therefore dealing with an exchange rate of around 1,400 won on the dollar, which necessitates an increase to the retail price of its hardware. An 8 GB iPod Nano, for example, has climbed in price from 180,000 to 249,000 won, and the 32 GB iPod Touch has escalated from 489,000 to 659,000 won.
Where was the article in November titled: "Australian Windows now 50% more expensive!"? It's just as relevant and just as much a useless article as this one. Of course with a change in the exchange rate prices will change... *facepalm*. We saw the cost of supply for Vista Ultimate go from 200AUD to 300AUD practically overnight. It's hardly news though - it's just what happens when your currency drops from 95 US cents to 55 US cents. :p
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|well if life is costing you too many wons
then make won ton soup.
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|Since so many people have lost their jobs in the U.S.A., everything is effectively more expensive, also. Is there a point or is the article just to stimulate hits?
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|This headline should definitely be removed. It is intentionally or ignorantly misleading. ANYTHING manufactured outside of Korea would be getting more expensive, duh. I may need to start persuading my compatriots away from Betanews and this kind of silliness.
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|This is unfortunate, but is it news? It's hardly shocking that prices increase with inflation. I expect we'll see a similar rise in the US as we continue to print money for economic stimulus.
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|I don't think that inflation has a whole lot to do with this particular story. The decline in the value of the Korean Won is due to the weaker Korean economy and the lower demand for Korean consumers for imported goods relative to demand for its exports. Forbes reported annualized inflation for February to be 4.1%. http://www.forbes.com/20...rkets-currency-won.html 4.1%
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|Yes, in large measure it does!
Apple's costs are not tied to internal Korean costs, which you reference in the ~45 cost of living differential.
Your reference wiuld be fine if Apple were located in Korea, manugfactuing the item with Korean resources and selling it in Korea.
But they are not.
Instead you have the variable of relative currency strengths and international exchange rates, which render the internal inflation rate moot.
As mentioned above, this is a non-story, with Apple being mentioned simply to drive emotional angst on this site. And as Jinky correctly observed, the phenomena has nothing in particular to do with Apple.
Stories like this are the press' equivalent of bad science.
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