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Economic Update

The CommSec iPad Index: Aussie dollar too dear?

Over time we have modified the index to keep pace with changes in products such as the iPod touch, iPad2 and the “new iPad”. This update looks at the pricing of the iPod nano, new iPad and iPod touch in 46 countries.

In April 2011 Australia was determined to be the fifth cheapest place to buy the new iPad 2 device (16gb, Wi-Fi only model) of the 26 countries where it was available at the time. How times have changed. Australia is currently assessed as the 15th cheapest place of 46 countries to buy a new iPad; 10th cheapest to buy an iPod touch; and 14th cheapest place to buy an iPod nano.

On current exchange rates and pricing, Hong Kong and Malaysia are the cheapest places for Aussie buyers to purchase key Apple tech items. Over the last three weeks, the new iPad has become US$22 or 4 per cent dearer in Australia on exchange rate changes. If the Aussie dollar rises further and local pricing doesn’t change, it will be increasingly more attractive to buy imported items like the new iPad from overseas.

If current pricing is regarded as correct the CommSec iPad and CommSec iPod indexes suggest that the Aussie dollar is around 5 per cent over-valued against the greenback. The Economist Big Mac index found the Aussie dollar to be 8 per cent over-valued.

While Australia is lagging on the Olympic medal table, there is some solace for Aussies in that key Apple tech gadgets are far cheaper in Australia than in the UK or major European nations.

To read the full report, click here.

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