You're forgetting sales tax. US prices are quoted excluding sales tax (as it varies state-to-state), whereas UK prices include VAT (currently 20%): Excluding V

You're forgetting sales tax. US prices are quoted excluding sales tax (as it varies state-to-state), whereas UK prices include VAT (currently 20%): Excluding VAT, the UK prices are a bit closer to what you'd expect. As an example: The 16GB Nexus 5x, excluding VAT: £282.50 US price, converted to GBP: £249.65 So while there's definitely an inflation to the price, it's not nearly as much as it seems. Well, not until you realise that sales tax in most (all?) states is dramatically lower than the 20% we have in the UK. But we only have our government to blame for that.