According to CommSec, a unit of Australia’s Commonwealth Bank, it noted that Malaysia’s the cheapest place to buy the 16-GB Retina Display iPad – RM1499 The most expensive country to get it from would be Argentina, where it’s sold for approximately RM3307.
The “Comparing Apples with Apples” index is a price list of the latest iPad Retina 16GB Wi-Fi in US Dollars in various countries, and compares the price of list of the Apple Inc. Product. It can also be seen as a guide to help shoppers know where would be the cheapest place to get one, and fortunately – Malaysia made it to the bottom of the list, making it the cheapest place to get the new Apple Inc. product from Canada and the United States (excluding tax).
CommSec has been keeping an iPod index since 2007, and later included the iPad in its list to monitor whether currencies are valued appropriately.
The Wall Street Journal says that the index is a good way of exploring the economic concept of purchasing power parity. In short – a good (or product) should trade at the same price in different countries when converted in the same currency given free markets. However, numerous factors like import restrictions, freight and travel costs and local taxes can affect the price of the product.
But does the fact that the iPad is cheapest in Malaysia could mean that our currency is undervalued?
[Source]
