As you know, the pound has been falling in value since the Brexit vote. We discussed how quickly the lower exchange rate gets reflected in prices. Well, Apple just did this. They introduced a new product, and priced it higher in the UK than in the US: 1750 pounds=over $2100, in the US $1800 (by the way, the price is Canada is CAD2300; so does the law of one price approximately hold)?
But they also took the opportunity to raise prices of their old products.
Bottom line: changes in exchange rate are not reflected right away in prices.
No comments:
Post a Comment