editorial

 

By Arthur Christopher

Over 20 years ago The Economist conceived an ingenious mothod of comparing purchasing power in a range of countries, based on the price of a McDonald's hamburger. Since then, the so-called 'Big Mac Index' has been a valuable reference point from which to examine whether currencies are overvalued or undervalued in the foreign exchange market...

Over 20 years ago The Economist conceived an ingenious mothod of comparing purchasing power in a range of countries, based on the price of a McDonald's hamburger. Since then, the so-called 'Big Mac Index' has been a valuable reference point from which to examine whether currencies are overvalued or undervalued in the foreign exchange market.

But with Apple having shifted over 21m iPods in the last quarter of 2006, a rival emerged: The iPod Index. So ubiquitous is the iPod that it is being hailed as a superior litmus than the famed Big Mac. Why nobody has thought of the Apple Mac index yet is a mystery to us.

South Africa is not included on CommSec's official iPod list, but with an iPod costing R1 599 and the rand (at the time of writing) at R7.06, South Africa ranks as the second most expensive country after Brazil with a dollar value of approximately $225.

The iPod Index, based on First Quarter 2007 prices, in US Dollars.
  1. Brazil $327.71
  2. India $222.27
  3. Sweden $213.03
  4. Denmark $208.25
  5. Belgium $205.81
  6. France $205.80
  7. Finland $205.80
  8. Ireland $205.79
  9. UK $195.04
  10. Austria $192.86
  11. Netherlands $192.86
  12. Spain $192.86
  13. Italy $192.86
  14. Germany $192.46
  15. China $179.84
  16. South Korea $176.17
  17. Switzerland $175.59
  18. New Zealand $172.53
  19. Australia $172.36
  20. Taiwan $164.88
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