Microsoft is blaming retailers, like Dick Smith, JB Hi Fi and Harvey Norman for the massive price hike which comes as the Australian dollar climbs to almost parity with the US dollar. This morning the dollar is trading at $0.92 a 38% jump on where it was at 3 months ago. Yet despite this several vendors and distributors in the consumer electronics market are price gouging Australian consumers.
In many cases their actions are supported by overseas subsidiaries that are desperately looking for profits ashome markets like Europe, the UK and the USA slump.
One vendor Sonos has decided to cut costs by up to 25% but others are simply taking advantage of the situation. One vendor in particular is Sony who has been price gouging consumers in Australia for years.
But they are not alone Yamaha is currently charging 63% more for a receiver in Australia than the US, Samsung 20% extra for their TV's, Pioneer 59% for their Car CD receivers while distributors like Audio Dynamic have a recommended retail price on their GenevaSound iPod dock of $3,999 when it is selling in the USA for $1,999.
An investigation by ChannelNews reveals that in some cases vendors are being held to ransom by mass retailers, with the likes of JB Hi Fi who reported a 45% jump in profits this month and Harvey Norman who demand massive margins, rebates and marketing support compared to US retailers.
They also refuse to stock products unless they are getting high margins and marketing rebates. Ironically one of the few Companies who refuse to pander to retailer demands is Apple who tell retailers the terms in a take or leave it attitude to their highly popular iPods, iPhones and MAC notebooks.
