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.

Julia Rampen
Show Hide image

Donald Trump's inauguration marks the start of the progressive fightback

Opponents to Donald Trump and Brexit are reaching across the Atlantic. But can they catch up with the alt-right? 

In the icy lemon sunshine of 20 January 2017, a group of protestors lined London’s Millennium Bridge, drumming. Two scarf-clad organisers held placards that spelt “Open Hearts”. 

Protesting the inauguration of Donald Trump as the 45th US President might seem like a waste of time when you could spend the day under the covers instead. But the protestors were upbeat. Sophie Dyer, a part-time student and graphic designer I met on the bridge, told me her group were “trying to avoid mentioning his name”. 

When I asked her what had catalysed her interest in political activism, she said: “Everything. 2016.”

One of the trademarks of the times is the way the alt-right learnt from each other, from Donald Trump crowning himself “Mr Brexit”, to France’s Marine Le Pen sipping coffee at Trump Towers. Now, progressives are trying to do the same. 

The protestors were part of the Bridges Not Walls protests. Ten hours before I stepped onto the Millennium Bridge, New Zealand activists had already got started. As the sun rose over Europe, banners unfurled from bridges in Dubai, France, Spain, Sweden and Norway. In the UK, there were also protests in other cities including Edinburgh and Oxford.

The demonstrations are about Trump – the name is a direct rebuke to his pledge to build a wall on the southern border – but they are no less about Brexit, or, as environmental campaigner Annabelle Acton-Boyd put it, “right-wing populist movements”. 

Acton-Boyd said she had come to show solidarity with American friends who opposed Trump.

But she added: “It is about coming together supporting each other geographically, and across different [political and social] movements.” 

In the election post-mortem, one of the questions confronting progressives is whether voters and activists were too focused on their own issues to see the bigger picture. This varies from controversial debates over the role of identity politics, to the simpler fact that thousands of voters in the rustbelt who might have otherwise helped Clinton opted for the Green candidate Jill Stein.

But while Bridges Not Walls paid homage to different causes - LGBTQ rights were represented on one bridge, climate change on an other - each  remained part of the whole. The UK Green Party used the event to launch a “Citizens of the World” campaign aimed at resettling more child refugees. 

Meanwhile, Trump and his European allies are moving fast to redefine normal. Already, media critics are being blocked from presidential press conferences, divisive appointments have been made and the intelligence authorities undermined. 

As US opponents of Trump can learn from those in the UK resisting a hard Brexit, resisting this kind of right-wing populism comes at a cost, whether that is personal infamy a la Gina Miller, or the many hours spent dusting off books on constitutional law. 

The question for transatlantic progressives, though, is whether they are prepared to leave the morning sunshine for the less glamorous elbow grease of opposition – the late night email exchanges, the unpaid blog posts, the ability to compromise - that will be needed to bend the arc of history back towards justice. 

 

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