Creative Suite 3 has been putting bread on Adobe Systems' table this quarter. During its fiscal third quarter ended 31 August, the company reported a record revenue of $851.7m, compared to $602.2m in Q3 2007. GAAP net income rose to $205.2m, compared with $94.4m in the same quarter last year. GAAP operating income was $225m in …
Massive price tag = massive profits
I'd have expected nothing less than record profits and stellar performance considering the ridiculously high pricing for CS3 products. Even If they don't shift as many units they more than make up for the shortfall, especially with the special Adobe dollar > pound exchange rate.
And how much of that massive profit
came from us UK and European users?
Price differences between the US and other countries helps.
As an example in the US Adobe sells Fireworks for $299, in the UK £299 exc VAT. That is a phenomenal 100% mark-up for a downloadable product.
For the CS3 suite the difference in price between the US and European prices is around $1000 more and a similar story can be found across it's other product ranges (e;g. Coldfusion).
Adobe's world pricing is a complete joke and encourages users to circumvent paying local taxes (VAT) . It is cheaper to fly to America, buy there and fly back.
I believe Adobe has been reported to the European Commission for it's pricing policy, but Adobe have a policy of pricing to what the local market can handle. In this case us non-us individuals apparently can handle being fleeced.
Course there are price differences
If there weren't, the US would realise that UK citizens are loads richer than them now :)
Refuse to buy any Adobe products....
due to their extortionate pricing. Those that do are simply idiots (unless they buy direct from the US). Adobe's profits would surely be about the same if they lowered the price over here, due to the increased sales they would get.
I don't buy them!
I paid for a copy of Photoshop 7, and haven't seen a compelling feature in any of the subsequent upgrades. Granted, I'm not a graphics Pro, but I'm a keen photographer, and I'm running Photoshop every day.
Perhaps Adobe could spend some of this phenomenal profit on actually improving its products?