How does Apple keep its prices so regular?

It's not just the iron will of Tim Cook…

Why do you never see Apple products discounted? Everyone knows to shop around if you're buying consumer electronics. It's a market where there are often vast discounts over the recommended retail price, and where buying direct from the manufacturer, if its possible at all, is a way to guarantee you get ripped-off.

Except, it seems, Apple. The company maintains a cast-iron grip over its prices, and a huge quantity of its sales are direct. How does it do it? Macworld's Marco Tabini explains the two interconnected methods it uses.

Firstly, the company only offers a tiny wholesale discount to third-party resellers:

The actual numbers are a closely guarded secret, protected by confidentiality agreements between Cupertino and its resellers, but the difference probably amounts to only a few percentage points off the official price that you find at Apple’s own stores.

That small discount means that most stores can't offer much money off without losing money on every Apple product sold — but it also lowers the motivation for them to do anything with Apple at all. After all, if they make 30-55 per cent per generic Windows laptop sold, they are likely to push them much harder to customers, and may decide there's not even any point in stocking Apple at all.

That's where the second method comes in. Apple offers "substantial monetary incentives to retails who advertise its products at or above a certain price, the "minimum advertised price". Tabini writes:

This arrangement enables retailers to make more money per sale, but it prevents them from offering customers significant discounts, resulting in the nearly homogeneous Apple pricing we are used to.

It also explains why, particularly in the US, where they are more common anyway, mail-in rebates are so common on Apple gear. It allows the retailer to "advertise" the laptop at the minimum price, while still undercutting Apple on the final sale price.

All of that doesn't prevent companies offering discounts on Apple products where they can, though. Both PC World and Amazon UK offer substantial discounts on a couple of Apple laptops, while the company itself offers a lot of under-advertised, but potentially large, discounts for certain groups (not just students, but some professions too). Maybe the old myth is worth busting, and its time to shop around for that company as much as anyone else.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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