“Apple has big challenges and some opportunities following the UK ‘Brexit’ decision to exit EU, Europe accounted for 21.5% of its revenue in FY 2015,” Jonny Evans writes for Computerworld.
“In the short term the company will be looking to currency markets in order to ensure its existing UK pricing is sustainable,” Evans writes. “With the pound at its lowest level in 31-years and a big chance it will fall beneath its current $1.3:£1 support position importers in every category will likely need to price in the risk of further price falls.”
“A weak pound may also be an opportunity for the company to issue bonds and debt at low, low prices in the UK,” Evans writes. “Conversely, UK consumers seeking loans may find credit limits negatively impacted by local economic uncertainty, and the UK’s financial sector is likely to shed at least some jobs in Europe’s favor.”
Read more in the full article here.
MacDailyNews Take: Big changes, big risks, and big opportunities.
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Anticipating that Apple would shortly raise the price for UK customers, I ordered my new iPhone and it arrived a couple of hours ago.
Good thinking, alanaudio!
My guess is that Brexit will present plenty of opportunities for the rich (in Britain, in Europe, and elsewhere) to get richer, and plenty of risk that the middle and lower classes will get poorer. The irony is that, statistically, the rich who will benefit are more likely to have voted to Remain, while the poor who will suffer are more likely to have voted to Leave.
Apparently, UK was paying a premium before. an iPhone 6s 128GB is currently 581 GBP ( ~790 USD ) before VAT. In the US, it’s $849. Before Brexit, 582 GBP would have been ~$850 USD, but at launch last September, it was about at a $50 USD premium as the GBP has weakened since then.
Usually Apple doesn’t respond right away to currency fluctuations and wait for the next phone to introduce a new price, especially this close to a new launch.
Sure, they’re “losing” $50 USD on each sale in UK, but they also were reaping $50 USD extra at launch. I’m sure it’s a wash, as most of the phones have been sold in anticipation of the iPhone 7.
If rates stabilize at current levels, I’d expect them to raise the price to ~£666 ( £799 after 20% VAT ) which would be a $60 premium over the USA.
Nigel Farage is the greatest single force for liberty in Europe since Lech Walesa.
The article makes a comment about “The decision has driven more traffic to news sites (and away from other sites) than any other event this year, bar the tragic Orlando shooting,” . The news sites are inquiries about what is the EU, but there are other types of sites that have seen spikes, notably immigration inquiries to other countries Ireland, Canada and Australia figuring prominently.
Makes for an interesting domino effect. So many refugees coming in from Syria and area into Europe and elsewhere, putting that much pressure that the people from the UK are looking to shift themselves, another wave of pseudo refugees that are moving elsewhere.
Thing is that there are not many other places to go, a symptom of the overpopulation of the species on the planet. I’ve talked about Calhoun’s behavioral sink, and I believe that the behavioral values of the human population is shifting to something similar expressed by mice in Calhoun’s experiments (reduced liters, a rise in cannibalism, violence, homosexuality and so forth).
It would be wonderful if there was more leadership with this issue. We know who are the experts at killing and so far only the Chinese have done something active to reduce the population without culling it. There is a lack of leadership for sure at one level, but one thing is for sure, the human population will be reduced one way or another. You can do it the easy way and reduce the birth rate, or you can wait for the cull.
Either way…
I think there are some flaws/limitations to that behavioral sink theory, but there is no doubt a limit to the earth’s capacity. The question is how will we change when we hit it, and how hard and fast will that change be? These early signs are not very encouraging. I hope it will be somewhat gradual and measured, with an eventual population contraction due to behavioral/cultural change across the planet rather than too much violence and forceful removal of liberties.
Thanks for your post Ashan. I do believe that there are indeed some flaws to that theory, and it has a limitation that it is a laboratory situation. Still there ideas have merit.
We’ve hit the change, twice in human history there has been a jump in population, one during the agricultural revolution, that stabilized. The other the industrial revolution and we are still experiencing that population expansion with no stability in sight.
It could be regulated by a gradual decline, but that would take some astonishing leadership so I would not count on that. More than likely it will be a cull, a rather large cull. Sometimes a crisis is what is needed to get people moving and I suspect this will be the case.