Apple, Microsoft and Adobe Required to Explain High Pricing in Australia

Apple is one of three high-profile companies being required to explain to an Australian government inquiry why its product pricing in Australia is significantly higher than in the United States, reports Kotaku Australia. The issue is not a new one for Australian officials, but legislators are stepping up their investigations into prices being paid by Australians.

The action comes after Apple, Microsoft and Adobe had all refused to send representatives to public hearings held by the IT Pricing Inquiry. The government has now issued summonses to all three companies, requiring them to attend and Parliament member Ed Husic warning that legal consequences will follow if they fail to comply.

These firms should have cooperated and been prepared to be more open and transparent about their pricing approaches. [...]

Adobe, Apple and Microsoft are just a few firms that have continually defied the public’s call for answers and refused to appear before the IT Pricing Inquiry.

Apple's pricing does vary significantly by country, although comparisons often do not take into account taxes that are included in the base price in many countries but not in the United States. Different products also vary in their pricing comparisons across countries.

For example, the base 27-inch iMac is priced at $1799 in the United States, A$1999 (US$2054) in Australia and £1499 (US$2352) in the United Kingdom. But when subtracting included taxes from the international pricing, the iMac comes in at A$1817 (US$1867) in Australia and £1249 (US$1960) in the UK, for price premiums of 3.8% and 8.9% respectively.

imac_store_au
For the 16 GB Wi-Fi iPad, the difference is even smaller once taxes have been accounted for, with the device priced at $499 in the United States, A$490 (US$503.38) in Australia and £332.50 (US$521.66) in the UK for price premiums of 0.9% in Australia and 4.5% in the UK.

iTunes Music Store pricing shows a much greater disparity for Australian customers, with tracks that sell for $1.29 in the United States being priced at $1.99 before tax in Australia.

Apple has traditionally priced its products somewhat higher internationally even when accounting for taxes, due in part to increased cost of business in many countries relative to the United States and as a buffer against fluctuating currencies. Customers and government officials in many of these countries feel, however, that pricing is still too high, particularly for digital content such as downloadable music and software that does not incur many of the overhead costs associated with physical goods.

The Australian Financial Review reports that Apple had testified in private on the matter, but had refused to do so at the public hearings. It cited IBRS analyst James Turner as commenting that this was part of Apple's long-established approach to secrecy:

It’s a carry-over from the cult of personality that Steve Jobs built up around himself. People can call it arrogant, but that’s only because Apple’s way is different and they keep getting away with it. I also think that the refusal to engage will be what ultimately undermines Apple.

The public hearing is scheduled for March 22.

Popular Stories

iOS 19 Mock WWDC25 Feature

iOS 19 Expected to Run on These iPhones

Monday March 31, 2025 5:28 pm PDT by
iOS 19 will not be available on the iPhone XR, iPhone XS, or the iPhone XS Max, according a private account on social media site X that has accurately provided information on device compatibility in the past. The iPhone XR, iPhone XS, and iPhone XS Max all have an A12 Bionic chip, so it looks like iOS 19 will discontinue support for that chip. All other iPhones that run iOS 18 are expected...
maxresdefault

Apple Releases iOS 18.4 With Priority Notifications, Ambient Music, New Emoji and More

Monday March 31, 2025 10:03 am PDT by
Apple today released iOS 18.4 and iPadOS 18.4, the fourth major updates to the iOS 18 and iPadOS 18 operating system updates that came out last year. iOS 18.4 and iPadOS 18.4 come two months after Apple released iOS 18.3 and iPadOS 18.3. Subscribe to the MacRumors YouTube channel for more videos. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to...
watchOS 11 Thumb 2 1

Apple Releases watchOS 11.4 With Sleep Alarm Update

Tuesday April 1, 2025 10:34 am PDT by
Apple today released watchOS 11.4, the fourth major update to the operating system that runs on the Apple Watch. watchOS 11.4 is compatible with the Apple Watch Series 6 and later, all Apple Watch Ultra models, and the Apple Watch SE 2. watchOS 11.4 can be downloaded on a connected iPhone by opening up the Apple Watch app and going to General > Software Update. To install the new software,...
AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 2 and AirPods 4

Monday March 31, 2025 11:27 am PDT by
Apple today released new firmware updates for all AirPods 4 and AirPods Pro 2 models. The new firmware is version 7E93, up from the 7B21 firmware that was installed on the AirPods Pro 2 and the 7B20 firmware available on the AirPods 4 and AirPods 4 with ANC. It is not immediately clear what new features or changes are included in the new firmware, but we'll update this article should we find ...
macOS Sequoia Feature

Apple Releases macOS Sequoia 15.4 With Mail Categorization and More

Monday March 31, 2025 10:04 am PDT by
Apple today released macOS Sequoia 15.4, the fourth major update to the macOS Sequoia operating system that launched in September. macOS Sequoia 15.4 comes two months after the launch of macOS Sequoia 15.3. Mac users can download the ‌‌macOS Sequoia‌‌ update through the Software Update section of System Settings. It is available for free on all Macs able to run macOS 15. With...
iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
Apple Card iPhone 16 Pro Feature

Visa and American Express Vying to Win Apple Card Deal in 'Fierce' Fight

Tuesday April 1, 2025 1:50 pm PDT by
Visa wants to pay Apple approximately $100 million to be the new payment network for the Apple Card, reports The Wall Street Journal. As of right now, the Apple Card is on the Mastercard payment network, but that is set to change because Apple is ending its partnership with Goldman Sachs. Both American Express and Visa are vying to replace Mastercard as Apple's card services provider, while...

Top Rated Comments

MonkeySee.... Avatar
158 months ago
If Australia doesn't like it, maybe Australia should develop it's own home-grown talent and compete.
The best bit about Apple at the moment is design and I think you have an Englishman to thank for that.

Bloody Americans :rolleyes: ;)
Score: 77 Votes (Like | Disagree)
Number 41 Avatar
158 months ago
Look, Australia --

Just because you've figured out how to sell a steak for $9 at Outback doesn't give you the right to go telling other people how to price things.
Score: 39 Votes (Like | Disagree)
WestonHarvey1 Avatar
158 months ago
Look, Australia --

Just because you've figured out how to sell a steak for $9 at Outback doesn't give you the right to go telling other people how to price things.

Outback isn't Australian. It's an "Australian themed" American restaurant chain.
Score: 32 Votes (Like | Disagree)
apple_iBoy Avatar
158 months ago
If Australia doesn't like it, maybe Australia should develop it's own home-grown talent and compete.

Is this the same government that recently banned A-frame ladders? Now it has a panel that can require companies to show up to publicly defend their (arguably reasonable) pricing or face "legal consequences?"

This is not like gouging on gasoline or milk during a hurricane. This is an iMac.
Score: 30 Votes (Like | Disagree)
ItWasNotMe Avatar
158 months ago
That's how much it costs to ship products to the Edge of the Known Universe.

Shenzhen - Sydney = 4587 Miles
Shenzhen - Los Angeles = 6888 Miles

So further you ship the cheaper it is:)
Score: 28 Votes (Like | Disagree)
Stella Avatar
158 months ago
The Australian government have every right to try and protect their consumers against price gouging.

Other countries should do the same IMO.

Unsure why above comments think otherwise?

That's how much it costs to ship products to the Edge of the Known Universe.
Even digital delivered content?
Score: 28 Votes (Like | Disagree)