Tuesday, January 27, 2015

How Much The Apple Watch Might Cost In Australia - Calculating The Price

Image By: Apple, Inc.
All around the world countries are trying to figure out one important question... How much will the Apple Watch cost in their country. Everyone is eagerly awaiting a new Keynote from Apple to announce the market date and prices for all the different models of the Apple Watch.

At the moment only the U.S. website shows "Early 2015", while other countries have to settle with a date that can fall anytime between January 1st and December 31st 2015. Rumors have the Apple Watch shipping sometime in March, at least for the U.S.

As for the price, so far all we know is the Apple Watch range will start from $349USD. This price is presumably for the cheapest model, which would likely be the 38mm Apple Watch Sport with a Sports Band.

As far as the starting price for the 42mm Sport, or the Stainless Steel models, and Gold Edition models, it's anyone's guess. So far guesses have included a starting price tag of $500 for the Stainless Steel (presumably with a Sport Band) and a $5,000 tag for the Edition.

Is it possible to predict other countries starting Apple Watch price based on the items currently available in the Apple Store? Today on Apps-Reviewed, I am going to see if there seems to be a pattern. To test this theory, I'm going to compare the U.S. prices to the Australian Apple prices to try and predict the starting price of an Apple Watch in Australia.

Let's start with the basic current conversion rate, which we all know will never actually be the 'real' price. Dollars fluctuate and there needs to be a buffer zone. As of today, January 27th 2015, the current conversion of $349USD to Australian dollars is $440.49AUD. Ouch, the Aussie dollar has dropped. So that's a difference of $91.49 or 26.215%. As I said earlier, don't expect this price.

Now lets compare some of the same items between country stores. An item in the U.S. store with the same starting price of the Apple Watch is the iPad Mini 2 32GB model, price $349USD. It may look like our search for the Australian starting price of the Apple Watch is already over! A iPad Mini 2 32GB in Australia sells for $429AUD. That's a difference of $80 (22.923%). So if Apple keeps the same price structure, we may see the cheapest Apple Watch start at $429 in Australia. But lets compare some other items, just to be sure...

Something newer, the iPad Air 2 (16GB). Starting price of $499USD, Australian price, $619. That's the difference of $120 and the percentage of 24.048%. Getting a little higher. What about the iPad Mini 3 16GB? U.S. price $399. Australian price, $499. Difference, $100, percentage 25.063%. Getting higher again, but keeping within a certain zone.

Lets go bigger, and by bigger, I mean smaller size - but with more capability: the iPhone 6 16GB. U.S. unlocked sales price, $649. Australian price - prepare for shock - $869. A difference of $220 and the largest percentage yet of 33.898%.

Now something different other than iPads and iPhones. The MacBook Pro with Retina Display. U.S. starting price, $1,299. Australian starting price, $1,599. An extra $300. Which is 23.095%. I guess it seems fair.

So after comparing these Apple items from the U.S. store and the Australian store, there does seem to be a somewhat conversion rate constant. Unless it's an iPhone, the difference between prices seems to be around an extra 23 to 25%. And since the Australian dollar is 21% lower than the U.S. dollar currently, a big shock to me but, Apple's prices do seem fair. (At least the conversion from U.S. dollar to Australia dollar).

Now back around to where we started, the Apple Watch Australian price. After my research on the Apple Stores showed a 23 to 25% price difference between the USA and Australia, I believe the Australian starting price for the Apple Watch range will be $429, mainly based on the iPad Mini 2 (32GB) price being the same as U.S. Apple Watch starting price. Which would make the Aussie Apple Watch starting price lower than the current dollar conversion rate. So because of this, I am predicting a starting price anywhere between $429 to $470, as Apple may take this opportunity to increase the percentage conversion between countries, because the Australian dollar has dropped significantly over the last few years.

As for the other Apple Watch models, if a version of the stainless steel Apple Watch does start from a U.S. price of $500, Australia could see a starting price of $625 for that same model. And if the Edition Apple Watch starts at $5,000, well you'll be looking at the least in the mid 6,000 area.

There is currently no announced release date for the Apple Watch in Australia, other than "2015", but if the Watch launches in Australia at the same time as the U.S., current rumors have estimated a by-end-of-March date.  

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