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Korean Job Discussion Forums "The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
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Real Reality
Joined: 10 Jan 2003 Location: Seoul
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Posted: Tue Feb 15, 2005 2:32 am Post subject: Consumer Electronic Products More Expensive |
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Discount the iPod
I read with interest the article under the heading, "Apple Korea raised the prices of its iPod MP3 players" in your Feb. 12 edition. As an iPod owner living in Korea, I would like to offer an observation. Apple products in South Korea are generally significantly more expensive than in other countries, as are consumer electronic products generally. Looking at the 20 gigabyte iPod cited in the article, we have the following: Korea, 418,000 won ($405); Japan, 327,000; Hong Kong, 318,000; Australia, 405,000; Singapore, 343,000; and the United States, 307,000 won.
Other Apple products in South Korea are similarly overpriced. Aside from someone in Australia, it seems unlikely that anyone outside South Korea would complain about a Korea-only discount since their domestic price will still be less, so Apple's excuse doesn't make much sense. Even in the United States, Apple products have always tended to cost more than competing technologies. People who buy Apple products know this but buy them anyway because they think Apple's products are better (in terms of technological superiority, elegance of design, etc.) enough to justify the difference in cost.
Koreans are very tech-savvy people and portable music players, like other consumer electronic goods, are very popular here. Apple's products cost too much to be competitive. I'd be very interested to see what their sales statistics are for iPods in Korea.
by Joshua Margolis
http://joongangdaily.joins.com/200502/14/200502142253426179900090109013.html |
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mindmetoo
Joined: 02 Feb 2004
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Posted: Tue Feb 15, 2005 3:01 am Post subject: |
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Even electronics produced right here in Korea like iRiver and Samsung are more expensive to buy here than in the USA. A user here had a very sensible explanation. Because Korea puts such a high duty on imported electronics, which means mostly Japan, the competing Korean product can be priced hire domestically. The iRiver mp3 player, then, only has to be a bit cheaper than the Sony product and it will still sell. |
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SuperHero

Joined: 10 Dec 2003 Location: Superhero Hideout
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Posted: Tue Feb 15, 2005 4:58 am Post subject: |
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Macintosh sucks |
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dogbert

Joined: 29 Jan 2003 Location: Killbox 90210
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Posted: Tue Feb 15, 2005 5:08 am Post subject: |
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Heh...I know that guy. |
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Derrek
Joined: 15 Jan 2003
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Posted: Tue Feb 15, 2005 6:23 am Post subject: |
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I saw Mini I-pods on sale for like $170 in the states when I was home after Christmas. |
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tommynomad

Joined: 24 Jul 2004 Location: on the move
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Posted: Tue Feb 15, 2005 6:32 pm Post subject: |
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SuperHero wrote: |
Macintosh sucks |
Wrong. Easily the most dependable, long-lasting, chip-based product line ever.
But I bought an iRiver mp3 player. I use it mostly for sports, and the iPod is way to frickin' heavy. |
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desultude

Joined: 15 Jan 2003 Location: Dangling my toes in the Persian Gulf
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Posted: Tue Feb 15, 2005 6:56 pm Post subject: |
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SuperHero wrote: |
Macintosh sucks |
sez who!  |
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JongnoGuru

Joined: 25 May 2004 Location: peeing on your doorstep
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Posted: Tue Feb 15, 2005 7:07 pm Post subject: |
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mindmetoo wrote: |
Even electronics produced right here in Korea like iRiver and Samsung are more expensive to buy here than in the USA. A user here had a very sensible explanation. Because Korea puts such a high duty on imported electronics, which means mostly Japan, the competing Korean product can be priced hire domestically. The iRiver mp3 player, then, only has to be a bit cheaper than the Sony product and it will still sell. |
Sorta yes, sorta not quite.
IMPORTS
The Korean government doesn't simply ban Japanese consumer electronics imports outright anymore, nor does it just slap on any old outrageous import tariff they feel like either. It's really not so much a problem of import duties as it is importer/distributor/retailer markups.
DOMESTICALLY MADE PRODUCTS
Cars, MWOs, TFT-LCD TVs, whatever ... You're likely to find these cheaper overseas than in Korea. The chaebol reps -- years before the local markets were opened -- were pretty candid with Korean consumers then: you ain't ever gonna buy Korean products cheaper here than abroad. Gouging the 'captive' local consumer is an integral part of the Asian export model, and Korea didn't invent that.
I'm curious, though. Given that online shopping in America and Hong Kong-style duty-free shopping represents quirks in the global marketplace, how do prices for computer & consumer electronics products in Korea compare with the Europe (Scandinavia, for instance), Canada, NZ, Latin America, Africa, etc.?
A British engineer living in Thailand was dispatched to Seoul for a year. He spent nearly every weekend -- and tens of millions of won -- on imported hi-fi gear at Yongsan to ship home to Bangkok. He says it would have cost him double in Thailand. I wouldn't know, but he seems to.
Thailand (or Latin America or Eastern Europe or Africa or basically anywhere) doesn't even have a high-end audio industry to protect. So why do those places bother trying to discourage imports through high tariffs? |
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The Lemon

Joined: 11 Jan 2003
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Posted: Tue Feb 15, 2005 11:30 pm Post subject: |
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Quote: |
I'm curious, though. Given that online shopping in America and Hong Kong-style duty-free shopping represents quirks in the global marketplace, how do prices for computer & consumer electronics products in Korea compare with the Europe (Scandinavia, for instance), Canada, NZ, Latin America, Africa, etc.? |
Surprisingly good, so long as you either buy at Yongsan's Sunin Plaza and its neighbours, or buy online using one of the big shopping multi-search engines like www.omi.co.kr.
The best prices in Korea (this does NOT mean E-mart or Electroland) for computer gear and digital cameras are less than at Singapore's Sim Lim and are also competitive with Pantip Plaza in Bangkok and Low Yat Plaza in KL. Korea's prices are a LOT better than the Canadian retail (Future Shop) prices, with the exception of Canadian on-line retailers like Tigerdirect.
The country that is the cut-rate king is still the US. Some of the cheapest deals in the world are at US Wal-Marts & big-box stores (CompUSA, BestBuy), and through American online vendors.
In general, UK and Europe's prices cannot compete with the rest of the world. I'm guessing that this is a tax/duty issue, or because of local markups.
The price of consumer electronic goods (DVD players, CD players, camcorders) in Korea continues to be obscene. |
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dogbert

Joined: 29 Jan 2003 Location: Killbox 90210
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Posted: Wed Feb 16, 2005 12:07 am Post subject: |
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Pay with your life?
********
February 15, 2005 -- EXCLUSIVE
City students have become victims of a rash of vicious iPod muggings and a spike in larcenies at schools.
One South Brooklyn transit officer, who asked not to be identified, said his district has seen a near doubling of student iPod robberies on the subways in recent months.
Just last week, he said, a James Madison HS student took 44 stitches after being stabbed for his iPod on a Q train. At least three students at Stuyvesant HS in Manhattan recently reported getting jumped outside their school for iPods.
Inside schools, grand larcenies shot up 41 percent during the first two months of school over the same period last year, according to the mayor's management report released last week. Petit larceny jumped 16 percent.
Concerned with the crimes, South Brooklyn transit cops last week distributed fliers offering to engrave students' iPods and cellphones with ID numbers beginning today at John Dewey HS in Sheepshead Bay.
But police brass late yesterday put the kibosh on the initiative, which they had hoped to expand citywide, upon being told by the city Department of Education that the items are banned in schools because they're considered distracting.
"We don't want it to be misinterpreted as encouraging bringing banned items to school," said NYPD spokesman Paul Brown.
Education spokesman Keith Kalb said the program was worthwhile, but held firm that the noisemakers are off limits on school grounds.
When asked if the department could make an exception, he noted that the agency only learned of the police plan yesterday through inquiries from The Post.
"We would certainly support a police effort to etch anything after school or at other times," Kalb said. "Kids should not bring cellphones or iPods to school."
Police said the white iPod headphones, which seem to be pumping tunes into the ears of every other youngster on the street these days, are alerting would-be thieves to the presence of the tiny but big-bucks music players.
The machines start at $299 and can hold more than 10,000 songs ?a collection that can take years to accumulate.
Public Advocate Betsy Gotbaum said the spikes in larcenies were cause for concern and accused Mayor Bloomberg of ignoring the problem.
"Things have gotten so bad that the NYPD has taken it upon itself to fight crime where the Department of Education isn't," she said.
Police said that students interested in engraving their iPods or other valuable items could visit a transit district office and have them etched.
The Bloomberg administration has crowed about its school safety record. But the spikes in larcenies and in disorderly conduct, which rose 36 percent, stand out in an otherwise positive cross-section of school crime data.
Gotbaum charged the city with focusing all its attention on the 17 most dangerous schools at the expense of others.
"The mayor needs to find a more effective way to make our schools safer," Gotbaum said.
IPODDY-POOPER THUGS ATTACKING SCHOOLKIDS |
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teachmeenglish
Joined: 14 Dec 2004
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Posted: Wed Feb 16, 2005 6:12 am Post subject: |
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I understand walmart in the US is offerign a linux laptop for 500US. What I want to know is considerign that nobody in Korea pays for the software, why can I not buy a basic laptop fro even twice that? There is soemthing screwy about laptop prices here. And ifanyone knows where I can or is selling a decent older one, let me know  |
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The Lemon

Joined: 11 Jan 2003
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Posted: Thu Feb 17, 2005 2:16 am Post subject: |
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teachmeenglish wrote: |
I understand walmart in the US is offerign a linux laptop for 500US. |
Hey, he's right:
Cheap laptop at Walmart
Not a particularly fast chip, and tiny memory, but still... If I was in the US I'd be looking at one of the models in the 700 dollar range. Good stuff.
Regarding your question, I'll guess:
1. import duties
2. high markup, related to the traditionally high prices for laptops
3. distribution costs - as even most Korean branded laptops are in fact rebranded Chinese or Taiwanese units like Asus or Acer (this is the case with my Trigem)... so there are a few extra layers of distribution to pay for.
These are guesses. Anyone better informed want to take a stab? |
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