Apple, Microsoft and Adobe Required to Explain High Pricing in Australia

Apple is one of three high-profile companies being required to explain to an Australian government inquiry why its product pricing in Australia is significantly higher than in the United States, reports Kotaku Australia. The issue is not a new one for Australian officials, but legislators are stepping up their investigations into prices being paid by Australians.

The action comes after Apple, Microsoft and Adobe had all refused to send representatives to public hearings held by the IT Pricing Inquiry. The government has now issued summonses to all three companies, requiring them to attend and Parliament member Ed Husic warning that legal consequences will follow if they fail to comply.

These firms should have cooperated and been prepared to be more open and transparent about their pricing approaches. [...]

Adobe, Apple and Microsoft are just a few firms that have continually defied the public’s call for answers and refused to appear before the IT Pricing Inquiry.

Apple's pricing does vary significantly by country, although comparisons often do not take into account taxes that are included in the base price in many countries but not in the United States. Different products also vary in their pricing comparisons across countries.

For example, the base 27-inch iMac is priced at $1799 in the United States, A$1999 (US$2054) in Australia and £1499 (US$2352) in the United Kingdom. But when subtracting included taxes from the international pricing, the iMac comes in at A$1817 (US$1867) in Australia and £1249 (US$1960) in the UK, for price premiums of 3.8% and 8.9% respectively.

imac_store_au
For the 16 GB Wi-Fi iPad, the difference is even smaller once taxes have been accounted for, with the device priced at $499 in the United States, A$490 (US$503.38) in Australia and £332.50 (US$521.66) in the UK for price premiums of 0.9% in Australia and 4.5% in the UK.

iTunes Music Store pricing shows a much greater disparity for Australian customers, with tracks that sell for $1.29 in the United States being priced at $1.99 before tax in Australia.

Apple has traditionally priced its products somewhat higher internationally even when accounting for taxes, due in part to increased cost of business in many countries relative to the United States and as a buffer against fluctuating currencies. Customers and government officials in many of these countries feel, however, that pricing is still too high, particularly for digital content such as downloadable music and software that does not incur many of the overhead costs associated with physical goods.

The Australian Financial Review reports that Apple had testified in private on the matter, but had refused to do so at the public hearings. It cited IBRS analyst James Turner as commenting that this was part of Apple's long-established approach to secrecy:

It’s a carry-over from the cult of personality that Steve Jobs built up around himself. People can call it arrogant, but that’s only because Apple’s way is different and they keep getting away with it. I also think that the refusal to engage will be what ultimately undermines Apple.

The public hearing is scheduled for March 22.

Popular Stories

AirPods Pro 3 Heart Rate Tracking Feature

AirPods Pro 3 Expected to Launch This Year With Key New Feature

Sunday August 24, 2025 7:16 am PDT by
Bloomberg's Mark Gurman expects Apple to release new AirPods Pro this year, and he said the earbuds will have a key new feature: heart rate monitoring. From his Power On newsletter today, with emphasis added:As for Apple's other devices, there's a lot in the fall pipeline — though many of the new products are only incremental upgrades. There will be Apple Watch updates, faster Vision...
iPhone 17 Pro on Desk Centered 1

iPhone 17 Pro Coming Soon With These 12 New Features

Sunday August 24, 2025 6:00 am PDT by
Apple's iPhone 17 Pro and iPhone 17 Pro Max should be unveiled in a few more weeks, and there are plenty of rumors about the devices. In his Power On newsletter today, Bloomberg's Mark Gurman corroborated a rumor that iPhone 17 Pro models will be "available in an orange color." Below, we recap key changes rumored for the iPhone 17 Pro models: Aluminum frame: iPhone 17 Pro models are...
Alleged iPhone 17 Pro Antenna Design

Two All-New iPhone 17 Colors Seemingly Confirmed

Monday August 25, 2025 4:22 am PDT by
Apple will offer the upcoming iPhone 17 Pro and iPhone 17 Pro Max in a new orange color, according to Bloomberg's Mark Gurman. Gurman made the claim in the latest edition of his Power On newsletter, adding that the new iPhone 17 Air – replacing the iPhone 16 Plus – will come in a new light blue color. We've heard multiple rumors about a new iPhone 17 Pro color being a shade of orange. The ...
iPhone 17 Air Thumb 2 Blue Electric Boogaloo

Apple Has Reportedly Considered Releasing iPhone 17 Air Bumper Case

Sunday August 24, 2025 12:40 pm PDT by
Apple has "considered" releasing a bumper case for the upcoming iPhone 17 Air, according to Bloomberg's Mark Gurman. Similar to the bumper case that Apple introduced for the iPhone 4 in 2010, Gurman said the iPhone 17 Air version of the case would cover the edges of the device, but not the back of it. Those bumper cases were made of rubber. Given that the iPhone 17 Air is expected to have ...
awe dropping event

Apple Event Announced for September 9: 'Awe Dropping'

Tuesday August 26, 2025 9:01 am PDT by
Apple will hold its annual iPhone-centric event on Tuesday, September 9 at the Apple Park campus in Cupertino, California, according to an announcement that went out today. The event will start at 10:00 a.m., with select members of the media invited to attend. At the September 2025 iPhone event, Apple will unveil the iPhone 17 lineup, which includes an all-new ultra-thin iPhone 17 Air. It...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3 Just Weeks Away: Eight Reasons to Upgrade

Wednesday August 20, 2025 6:44 am PDT by
We're only weeks away from Apple's annual iPhone event – rumored to take place on September 9 – and along with the new iPhone 17 series, we're going to get a new version of the Apple Watch Ultra for the first time since 2023. By the time the Ultra 3 is unveiled, it will have been two years since the previous model arrived. The intervening period has left plenty of room for enhancements,...
Awe Dropping Apple Event Feature

Five Things to Expect From Apple's 'Awe Dropping' September 9 Event

Tuesday August 26, 2025 4:17 pm PDT by
Apple today announced its "Awe Dropping" iPhone-centric event, which is set to take place on Tuesday, September 9 at 10:00 a.m. Pacific Time. There are a long list of products that are coming, but we thought we'd pull out five feature highlights to look forward to. That Super Thin iPhone - Apple's September 9 event will see the unveiling of the first redesigned iPhone we've had in years, ...
airpods pro 2 gradient

AirPods Pro 3: Four Key Design Changes Anticipated

Tuesday August 26, 2025 4:05 am PDT by
Apple hasn't updated the AirPods Pro since 2022 other than a shift from Lightning to USB-C, and the earbuds are due for a refresh. According to Bloomberg's Mark Gurman, Apple will launch AirPods Pro 3 later this year, and apart from new features like heart rate monitoring, we're also expecting a few design changes. The fourth‑generation AirPods offer useful clues to Apple's design cues for ...

Top Rated Comments

MonkeySee.... Avatar
164 months ago
If Australia doesn't like it, maybe Australia should develop it's own home-grown talent and compete.
The best bit about Apple at the moment is design and I think you have an Englishman to thank for that.

Bloody Americans :rolleyes: ;)
Score: 77 Votes (Like | Disagree)
Number 41 Avatar
164 months ago
Look, Australia --

Just because you've figured out how to sell a steak for $9 at Outback doesn't give you the right to go telling other people how to price things.
Score: 39 Votes (Like | Disagree)
WestonHarvey1 Avatar
164 months ago
Look, Australia --

Just because you've figured out how to sell a steak for $9 at Outback doesn't give you the right to go telling other people how to price things.

Outback isn't Australian. It's an "Australian themed" American restaurant chain.
Score: 32 Votes (Like | Disagree)
apple_iBoy Avatar
164 months ago
If Australia doesn't like it, maybe Australia should develop it's own home-grown talent and compete.

Is this the same government that recently banned A-frame ladders? Now it has a panel that can require companies to show up to publicly defend their (arguably reasonable) pricing or face "legal consequences?"

This is not like gouging on gasoline or milk during a hurricane. This is an iMac.
Score: 30 Votes (Like | Disagree)
ItWasNotMe Avatar
164 months ago
That's how much it costs to ship products to the Edge of the Known Universe.

Shenzhen - Sydney = 4587 Miles
Shenzhen - Los Angeles = 6888 Miles

So further you ship the cheaper it is:)
Score: 28 Votes (Like | Disagree)
Stella Avatar
164 months ago
The Australian government have every right to try and protect their consumers against price gouging.

Other countries should do the same IMO.

Unsure why above comments think otherwise?

That's how much it costs to ship products to the Edge of the Known Universe.
Even digital delivered content?
Score: 28 Votes (Like | Disagree)