The CommSec iPod index Is Wrong

The CommSec iPod index compares the cost of buying a 2GB iPod Nano in numerous countries. The index finds that the most expensive iPods are in Brazil, costing 2.1x more than in the iPod's home country of USA.

The cheapest, claims the index, is in Canada: US$144.20. Which made me blink my eyes. Canada? Shurley not!

The base price, in Canadian dollars, is $169.95. The Canada-US exchange rate has been roughly 1.14 this month. Thus:

Canadian price in US dollars = $149.08.

But that price is only part of the equation. Taxes play a factor. In Canada, the sales tax ranges from 7% (Alberta) to something approaching 20% in the Maritimes. Let's take my home province as an average, 13%.

In the US, sales taxes tend to range from 0% (Oregon) to something approaching 10%. Let's take 5%, the tax in Mass. as the average.

Customer's cost in Canada: US$168.45
Customer's cost in USA: US$157.45

So, the price in Canada is not the cheapest!

Comments

[Ram]

hmm...a good observation.....