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.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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