Bring Your Laptop

Our 2010 Mexico Price Watch report, that is being researched now for publication early in the New Year, is turning-out some interesting findings.

There are products and services you can buy in Mexico which are definitely lower in price than equivalents in the USA or Europe; for example: fresh food costs less, property taxes and healthcare costs are lower.

However, if you want to buy communications technology products, be aware that prices in Mexico are considerably higher than US equivalents.  To demonstrate the point, we compared the price of a laptop computer purchased in the United States with an identically-specified laptop purchased in Mexico.

We conducted this comparison using Dell’s website to price-up a high-specification laptop computer—the kind of machine you would buy if you used a laptop professionally.  We chose Dell because they ship direct to Mexico and the prices they quote include sales and import taxes as well as shipping.

The quote we compared is based on a Dell Studio XPS 16 Laptop, equipped with high-end components throughout and with Microsoft Office 2007 “Small Business Edition” pre-installed.

Purchasing this high caliber laptop in the USA would cost US$2,443 plus shipping charges and local state taxes which combined may add around US$100 to the total, depending upon what state you live in.

The quote for the same system delivered in Mexico with a lower-grade WiFi card (the higher grade card in the US model was not offered for the Mexico version) is MXP$44,035.  At today’s exchange rate, that works out to US$3,491; nearly a thousand Dollars more.

Some of the additional cost will be due to international shipping charges, import taxes, and Mexico’s 15% sales tax rate. Notwithstanding the precise reasons, US$1,000 seems like a lot of extra money to pay for the same product (and a lower-grade WiFi card).

The detailed quotations, which were produced yesterday, may be downloaded here: US Quote (PDF), and here: Mexico Quote (PDF).

There has long existed a premium on the price of technology and communication products sold in Mexico when compared to prices offered for the same products in the USA.  If you’re planning to visit Mexico for an extended period, or move here to live, work or retire, bring your existing laptop with you or, if the machine is old and getting outdated, consider upgrading your laptop before you arrive.  If you subsequently want or need a new computer, you will pay more for it here in Mexico.

Prices and price differentials is a theme that we will be delving into more deeply during the New Year, as we begin to report on prices across a wide range of products and services sold in Mexico.

See Also: Communications in Mexico