Australia has the world’s cheapest iPods

Australia now offers the world’s cheapest iPods, thanks to the falling Aussie dollar.

Australia now offers the world’s cheapest iPods, thanks to the falling Aussie dollar.

CommSec’s iPod Index, which began last year as a variant of The Economist’s Big Mac Index, puts Australia at the top, compared to eighth in April. Australia now offers iPods for $US131.95, compared to Indonesia at $US138.47 and Canada at $US138.73.

The rise to the top (or bottom, if you like) is due to the declining value of the Australian dollar, meaning US buyers can scoop up our iPod’s at bargain prices.

CommSec chief economist Craig James says iPod prices have fallen over the past few months, and differing prices worldwide encourages trade.

“The sharp fall in the Aussie dollar means goods in Australia have become super-cheap for foreign buyers. Our local goods are not only cheaper for tourists but our domestically- produced goods are cheaper on the world stage,” he says.

James also points out that since the index started, iPods have seen a four-fold increase in storage capacity and other features, but now cost $20 less. The introduction of the fourth-generation iPod Nano has seen a 20% to 25% drop in price globally.

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