By Gemma Simpson, 28 February 2007 14:40
NEWS
The UK pricing for Microsoft Windows Vista has been attacked this week by silicon.com readers.
Consumers cried foul over the price difference between buying Microsoft's latest operating system in the UK and buying it in the US.
Anger over the issue even prompted an e-petition on the Number 10 website which claims the premium Vista Ultimate version costs £350 in the UK but can be bought for £150 ($298) in the US.
silicon.com reader Nick Cole wrote: "It's all part of rip-off Britain. Don't charge what it costs to produce or develop, with a reasonable overhead, but charge as much as possible. Swapping a dollar sign for a pound sign is the easiest way of achieving that."
Many other readers echoed this sentiment.
However, readers have also been quick to point out this is not just a problem with Microsoft but one with many products sold in the UK. silicon.com reader Malcolm Wilson pointed out "Apple is just as bad" with its Tiger operating system that retails at £65.50 ($129) in the US and £89 in the UK – representing a 35 per cent mark-up.
He added: "Mac users also get a less than fair deal and it seems that nobody is prepared to do much about it."
How much?... A quick comparison of registered retail UK vs US software prices
♦ Adobe Photoshop Elements 5.0 Premiere Elements 3.0 Bundle: £23.33 more, UK price £99.99, US price £76.66 ($149.99):
♦ Apple iWork 06: £14.22 more, UK price £55.00, US price £40.38 ($79.00)
♦ Windows XP home edition with SP2 (upgrade): £44.39 more, UK price £94.99, US price £50.60 ($99.00)
silicon.com has scouted around other software prices and found UK recommended retail prices are higher than their US counterparts in almost all instances. Adobe's popular Photoshop software for example is 30 per cent more expensive in the UK than the US, while Apple's iWork 06 is 35 per cent more and an upgrade to Windows XP Home Edition with Service Pack 2 is nearly double the US price.
It isn't just software that silicon.com readers are feeling fleeced over. Another reader claimed that during his hunt for a digital camera all the major makes retailed at around 25 per cent higher in the UK than in the US.
So will signing 10 Downing Street's e-petition help? The majority of readers seem sceptical and one reader said: "All the petitions are a waste of time and just something else for our spin machine to ignore."
But, while we're on the subject of petitions, here's one you really shouldn't ignore - sign up for silicon.com's 'Fair Wi-fi' petition and support our campaign against rip-off charges for wireless internet access in hotels.
Comments
There are 21 comments. Join the discussion
1. anonymous
Why is anyone surprised?
Microsoft are a convicted predatory monopolist who has also been found guilty of overcharging consumers...
Not sure the spots ever change!
2. anonymous
Sadly it's not just US software companies.
Certain UK software companies also charge UK customers the same in pounds sterling as they charge US customers in dollars.
3. Gary Davis
It's not just software, but many other things, cd's dvd's, clothes, electronics and even fast-food etc. An earlier correspondent hit the nail on the head, "swop the $ sign for a £ sign" being the easiest way to make lots of money. I'm afraid we must have a reputation for being mugs with loaded wallets. Stop buying!
4. anonymous
Microsoft are very keen to ensure that we all have legit licensed copies. Not so keen on playing fair themselves. But I guess you've only got to look at the man at the top.
As for petitions, why would Blair take any notice:
- he's ignored the road pricing petition
- he likes rich people(Gates/Bulmer)
- He won't offend Bush
- He doesn't give a sod about the UK only about himself
5. Robin Jones
Signing petitions and waving placards doesn't hit anyone's bottom line. Switching to Linux, on the other hand, affects everyone's - yours positively and MS/Apple negatively. And now's the time, when some retraining is necessary whatever you do. So don't get mad, get even.
6. anonymous
I suggust someone looks at the prices of Musical Instruments in the US compared with in the UK ! Restrictive one supplier distribution contracts with no competition.
7. Norman Young
Surely the way to over come these hiked prices is to be patient and not buy the latest softeware a stick with what you got. After all how much better is vista?
It's the I must have the latest types that set the price. if we just waited a little while then the prices would settle down, Market forces !
8. anonymous
Companies are in business to make money, not create a free and fair society for all; including the ones most of us work for.
If you don't like the price then
DON'T BUY IT!!
The reason that the UK gets such a poor deal is that we complain about the price, but then go ahead and pay it anyway. If you are doing this then YOU are causing the problem.
The Americans get a better deal because they won't pay the price if they don't like it. Companies know this and price their products accordingly.
You can't blame a business for trying to maximise profits; that's what we all want to do.
9. Damian Quinn
Then if we're upset over how much Windows Vista and Apple's Tiger, why do we just go out and buy the software?
Whenever Microsoft brings out a new peice of software, we have to rush out and buy it, Why?
I totally agree with Anonymous statement, President Blair won't listen to the petition as he loves the fat cats, Bush, and everyone else in high up authority. He's just a brown nose slave!
10. anonymous
THEN DON'T BUY IT!
The reason that they can charge so much is because we are prepared to pay that much.
All the complainers moan and then buy it anyway. Stop whinging and take action. If nobody was buying the price would come down. Its that simple.
Its not Rip-off Britain, its Gullible Britain.
11. Richard Davies
Its classic rip off britain. I don't know why it happens but I'll bet its got something to do with the damned Government! Its not just Microsoft that are doing it...its most companies!
Us brits take too much as far as I am concerned...too often do we grin and bear being walked all over.
People always say to me...theirs no point in complaining as you can't change things. I however, strongly beleive that if people stuck together and stood their ground more then these things would never happen in the first place.
Imagine this...if people refused to buy Vista at that high price then the price would naturally fall...is this not simply supply and demand!
12. Bryan Scott
Any Marketing exec will tell you that the strategy in the UK is to lift the price to the maximum level which is then determined by the drop off in sales. Except for the major retailers of course where the philosphy is to rip off the supplier, goods or services, to maintian the lowest price and the greatest margin. Short term gain is the name of the game, maximise and run.
13. John Ray
People, and companies are run by people, should realise the consequences of their actions.
Buying products made abroad results in loss of British business and jobs, and vulnerability to higher prices set by the foreign companies.
This isn't a xenophobic rant, it's just a fact.
14. anonymous
Gary Davis is correct. We are all being taken for mugs.
Don't.
We all have a number of choices
1) Don't buy it, you don't really need it. Not yet anyway.
2)Get some one else to buy it for you, e.g. on expenses.
3) Buy it and be a mug.
4) Buy from the USA.
5) Wait a month or two for the pirated edition (Don't they make it so easy for the pirates to make their money?)
15. Lionel A Smith
UK pricing mark up on software is disgraceful and Vista price ensure that I will not be tempted anytime soon.
As a retired person who still does design work for voluntary organisations I would find Photoshop useful. Unfortunately I cannot justify the price tag of the full Photoshop product (if I were a teacher I could get it cheaper – where is the justice in this) and make do with Elements 1.
I tried the latest version of Elements on a new laptop last summer and was dismayed that it installed in such a way as to interface itself between me and USB memory devices and installed so much stuff I didn’t want in turn making it difficult to immediately access the photo-editor part and hogging processor time that I used some fixes found on the O’Reilly site. This did not fix all so I removed Elements and still had issues so re-installed XP-Pro. Then I reverted to a copy of Elements 1 that I had around – not the ‘dog’s bits’ but more effectively functional. This gives another reason not to move to Vista (besides possible issues with a Minolta film scanner) and to research on Linux alternatives.
16. anonymous
...and not just electronics either! I was in Egypt recently where four genuine Pfizer Viagra tabs sell over the counter at the pharmacy for about ten quid - and we are told that they will sell for FIFTY pounds in this country...
17. Tom Gray
When visiting the UK, Canadian visitors find price levels to be very convenient. To estimate the UK price, one need only recall the Canadian price and replace the dollar sign with a pound sing. Of course, there are over 2 CDN dollars to the pound so although the estimation is convenient, the price level is rather shocking. I bought a book at an Edinburch shop for the return flight to Canada. Walking out of teh shop, I realized that the 13 pounds that I paid for the book translated into almost 30 CDN dollars. That was a very expensive shock.
18. David Flynn
The US prices you quote are pre sales tax and the UK prices are post VAT. Taxes eat up a chunk of the difference. No?
Petition the government to lower VAT rates.
19. Donald Clarkson
I was in New Zealand in January and XP Home was selling for NZ$550 (about £200) so don't feel too aggrieved.
20. anonymous
You really think signing an e-petition is going to make any changes, I doubt it very much. 1.7M million people (including me) signed the e-petition for travel tax, and what was the government response, you guessed it, an email from Mr Blair, wonderful.
21. Michael Towse
Companies steal our money, then whine about software piracy. If they expect us to play fair, then perhaps they should start by playing fair, too.
A little while ago was was offered Paperport 10 by the publisher. At $99 I thought it was a good deal - until I tried to buy it. I was told I couldn't buy it in my 'territory' & was directed to the UK site. Well, what do you know, the price there was £99!
I emailed them to ask why they'd mailed me directly if they wouldn't sell the product to me. They didn't reply, but I received the same offer a few days later.
I emailed them again demanding that they sell the product to me at the price they offered it to me at. They refused, so I went elsewhere. So another customer lost!