Here is the replication of iPod example on Chinese Yuan
1 Yuan = $0.12
iPod = $299
iPod = 3,999 Yuan
Based on iPods, One Yuan should be worth 7.5 US cents and appeared to be about 61.5% overvalued!<g>
But interesting though, how Apple rips off the Chinese customers:
for European customers: 1.34Euro * $299= 400.66 Euro, but sold for only 349 Euro;
for Chinese customers: 8.28 Yuan * $299 = 2,475.72 Yuan, but sold for as much as 3,999 Yuan, 62% of premium of the exchange rate!
Yes, a small part due to China's tariff, but still this does not make sense. And Apple is not the only company doing this, hundreds of companies doing this to Chinese customers.
Edit, and this will make this price looks even more ridiculous since a lot of iPod is made by using Chinese cheap labors!
"Apple is the worst offender in the decline of U.S. manufacturing. Their engineers sit around in air-conditioned offices on streets with cutesy names like Infinite Loop in Cupertino, Calif., and have others make stuff for them. They imported two million iPods assembled by thousands of Chinese workers just last quarter -- an almost $1.5 billion annualized trade deficit in iPods alone."
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