Apple Price Gouging: Apple Responds to Australia Price Gouging Claim

Apple Price Gouging: Yesterday, we brought you this story pertaining to Apple Inc. (NASDAQ:AAPL): Apple Inc. (AAPL), Microsoft Corporation (MSFT) Gouging Aussies? Today, we are going to take a closer look at these claims from the eyes of the Cupertino-based company.

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If you did not take the time to check out our piece from yesterday, here is a brief rundown:

“A non-profit consumer advocacy group has taken notice of prices that consumers pay for certain tech products and services, and has decided to call out Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) over their pricing structures in Australia, and apparently representatives from both companies may be summoned to personally appear in Australia to answer for their pricing models.”

The Sydney Morning Herald has an update on this story, touching on the responses from these tech companies, including Apple Inc. (NASDAQ:AAPL).

Earlier today, Tony King, Apple’s vice president for Australia, New Zealand and South Asia, had the chance to respond to claims at the IT pricing inquiry in Canberra.

While discussing the fact that prices in Australia were in line with the United States, King added that right holders should be blamed for the mark-up.

Here are a few quotes from King:

“The pricing of this digital content is based on the wholesale prices which are set through negotiated contracts with the record labels, movie studios and TV networks.”

“In Australia, they have often set a higher wholesale price than the price of similar content in the United States.”

As you can see, King does not feel that Apple Inc. (NASDAQ:AAPL) is responsible for any “price gouging” claims. By showing that the price of content on iTunes in Australia is “comparable to other Australian physical and online stores” the company has a good argument moving forward.

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DISCLOSURE: I have no positions in any stock mentioned.

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