Apple had a great launch for iPhone at MacWorld 2007 where it met the expectations of its cult fan following. Now iPod is back in news for its impact on Forex economics. iPod has been accepted as a global standard for measuring purchasing power parity (PPP) across the globe.
CNN Money says:
Along the lines of the Big Mac index launched 20 years ago by The Economist magazine, the survey prices the 2GB Nano in U.S. dollars and found Brazilians pay the most for an iPod, shelling out $327.71, well above above second-placed India at $222.27. Canada was the cheapest place to buy a Nano at $144.20, while Australia ranked 19th at $172.36, cheaper than Germany ($192.46), France ($205.80), South Korea ($176.17) and China where the machine is manufactured. The U.S. was fourth cheapest at $149.
The Big Mac Index is an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. As stated in the Economist, it “seeks to make exchange-rate theory more digestible”. It is quite a popular index. Check the latest The Big Mac Index.
The Big Mac Index speaks about McDonald’s global power as well as acceptance as a common evaluation tool. With iPod gaining the same popularity, iPod has indeed gained currency!