Wednesday, June 22, 2011

Final Cut Pro X pricing

I saw the news that Final Cut Pro X had hit the Mac App Store earlier today. I've got to say, from where I'm sitting (in the enthusiastic amateur corner), it looks like an awesome product. I bought Final Cut Studio 2 (including Final Cut Pro 6) a couple of years ago, and struggled slowly up the learning curve. FCP 6 is obviously outstanding software, but, from the previews and initial impressions written up today, FCP X looks revolutionary. (It will be interesting to read the reviews from the professional angle over the next few months.)

In Australia, Final Cut Pro X is priced at $A 349, compared to $US 299 in the US. Currently, the Australian dollar buys about $US 1.05—so I can buy $US 299 for just under $A 285. It's really not clear to me where my extra $A 64 is going. I've read justifications for differential pricing on, say, iTunes that involve regional record company deals. I don't see an analogous explanation for the pricing of Apple's own software. I'm pretty sure I'll end up buying Final Cut Pro X, but I'd much rather being doing so for $A 285.

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4 Comments:

Anonymous Anonymous said...

GST plays some part in the price difference - but it doesn't explain the full discrepancy here. Plus it's not like this issue is universal for apple's pricing - they're stated that OSX 10.7 Lion will be about $33 over here which seems closer to the mark.

Wednesday, June 22, 2011 6:52:00 pm  
Blogger Paul A. Hoadley said...

You're right, I completely neglected to consider GST. But, presumably the US pricing includes coverage for various state sales taxes, doesn't it? In any case, as you note, that's not the full story—we're still $A 35.50 short even after adding on 10% to $A 285.

Wednesday, June 22, 2011 8:03:00 pm  
Anonymous Anonymous said...

After a quick look down the tubes it appears that US prices in the app store don't include sales tax. As the first reply here states, when a US/Canadian customer buys something through iTunes they automatically add 11%.

http://macosx.com/forums/opinions-open-letters/317832-apple-overcharging-non-us-customers.html.

This is the way it is IRL shops in the US as well - the prices they display on the shelves omit the sales tax which gets added at the counter. Crazy.

So that accounts for most of the other 35 bucks.

BTW, the lion pricing changes that I was talking about before can be found here.

Wednesday, June 22, 2011 8:36:00 pm  
Blogger Paul A. Hoadley said...

Obviously there's a bit of guesswork going on from both of us, but we can certainly either subtract the GST from the Australian price and compare, or add sales tax to the US price and compare. Let's just ignore the exchange rate difference, and call it $1.00. Subtracting GST from the Australian price gives $A 317, still higher. Adding 11% to the US price gives $US 331, still lower.

You're right, considering taxes (if all of our assumptions are correct), there's not as much in it. But there's still something in it.

Saturday, June 25, 2011 4:11:00 pm  

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