Adobe's spin: the flimflam man must do better
Adobe has put forward several excuses, I cannot call them arguments in the proper sense, for price differentials between the US and the rest of the world, particularly Europe. They're documented more fully here.
Let's take a look at them, and see if they hold water.
- The US is a homogenous market, Europe has 10 languages and 4 currencies.
- The US is not a homogenous market. Adobe offers three language versions for Photoshop (English, French, Spanish.)
- Australia is a homogenous market, one language, one currency. Over 30% mark-up compared to the US.
- Extra development and testing required for language variations.
- In the US, Photoshop language variations (Spanish, French) are the same price as the English version.
- The English version sold internationally is US English, yet still heavily increased in price.
- Lightroom is offered in three language variations (English, French, German) at the same price in Europe.
- In Switzerland, Apple sells the French and German language versions of Final Cut Studio for the same price as the English version.
- Complimentary warranty support.
- 'Complimentary' means 'free'. In other words, you don't pay for it.
- Do US customers not enjoy complimentary warranty support?
- Seminars and training in Europe.
- Presumably there are no seminars and training in the US then.
- Adobe was present at both NAB and Photoshop World. These were not held in Europe.
- Strength of the British pound and euro compared to the US dollar.
- The Swiss franc and Australian dollar are both weaker than the US dollar, yet Adobe's products are still more expensive in those countries.
- Lightroom is priced at more reasonable levels in Europe compared to the US.
- Exchange rate fluctuations.
- Exchange rates go in either direction. As I write this (18 April) the US dollar has weakened further against the pound and euro, thereby increasing the pricing disparity still further.
- Apple works in the same sector and geographical markets as Adobe, but still manages to maintain margins less than ca. 20%.
If you come across any more, please let me know!