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I'm confused. The chart says that local sales taxes are included. In the UK, VAT is 20%, so what's so strange about the price being 20% higher than in the US?

tonyedgecombe 10y ago
Yes, I just checked their example for the MacBook Pro, $1299 in the US, £1249 in the UK which is $1500, the extra is accounted for by 20% VAT which vendors must include in their prices in the UK. However if I compare prices to the beginning of the year they are about 25% higher, an obvious affect of the currency movements.
- HalfwayToDice 10y ago
  Except it's not because it rose 25% in all countries. Sorry.
  - kgwgk 10y ago
    What rose 25% in all countries since the beginning of the year? The entry level macbook pro (ignoring "legacy" models) is 15% more expensive than the previous model in the US, 20% more expensive in Switzerland, 45% more expensive in the UK.
furyg3 10y ago
I'm also confused. Maybe it's an old chart? They say they 'raised' prices by 20%, and that VAT is included. Based on the chart, a MacBook is $38.80 cheaper in the UK than in the US (excluding VAT). So the real story is "Apple no longer gives 20% discount to the UK"
pmlnr 10y ago
VAT is always included in prices shown in Europe unless stated otherwise.
ropiku 10y ago
Totally right. The iPhone is even cheaper accounting for VAT. US (no tax) is 649$, UK (20% VAT) is £599=728$ compared to 649*1.2=778.8.
the_mitsuhiko 10y ago
It was just changed to the new lower pound.
mhenr18 10y ago
Bingo. Many of us here in Australia complain about the prices being exorbitant - the same Apple computer that's marketed as $1,799 USD sells for $2,699 AUD. Take off the GST and you get $2,453 AUD. 1 USD = 1.32 AUD, and 1.32 * $1,799 = $2,374. So that's a $79 AUD markup on the product applied on Apple's part for buying it in Australia (with the rest being tax that's out of Apple's hands). Yes it's a non-zero markup but the AUD/USD isn't exactly a stable exchange rate so it makes sense that Apple won't align it to exactly the same amount. Consider that at the start of this year the US pricing of the MBP would have been equivalent to $2,621 AUD, and that in May it would have only been $2,302 AUD. Also consider that this time 4 years ago, the same $1,799 USD would have been $1,741 AUD. If you're a company that doesn't want to change its prices daily, it's hard to set a perfect price in international markets.
- mikeash 10y ago
  And keep in mind that most US states have sales tax which is not included in Apple's price. For example, that $1,799 computer would actually cost me $1,906.94, unless I cheated the system by buying from out of state and not reporting it. (Which is easy, and common, but technically illegal.)
salamander22 10y ago
The point being is that some models that didn't get an update yesterday had their price increased. For example, the Mac Mini range increased by between 15% and 16%.
- mikeash 10y ago
  Given that the pound has dropped almost 20% against the dollar, an increase of merely 16% is a pretty good deal.
Theodores 10y ago
Not being funny, but do Apple pay VAT or do they have some Double Irish tax dodge for that?

tonyedgecombe 10y ago

Yes, I just checked their example for the MacBook Pro, $1299 in the US, £1249 in the UK which is $1500, the extra is accounted for by 20% VAT which vendors must include in their prices in the UK. However if I compare prices to the beginning of the year they are about 25% higher, an obvious affect of the currency movements.

HalfwayToDice 10y ago
Except it's not because it rose 25% in all countries. Sorry.
- kgwgk 10y ago
  What rose 25% in all countries since the beginning of the year? The entry level macbook pro (ignoring "legacy" models) is 15% more expensive than the previous model in the US, 20% more expensive in Switzerland, 45% more expensive in the UK.

furyg3 10y ago

I'm also confused. Maybe it's an old chart? They say they 'raised' prices by 20%, and that VAT is included. Based on the chart, a MacBook is $38.80 cheaper in the UK than in the US (excluding VAT). So the real story is "Apple no longer gives 20% discount to the UK"

pmlnr 10y ago

VAT is always included in prices shown in Europe unless stated otherwise.

ropiku 10y ago

Totally right. The iPhone is even cheaper accounting for VAT. US (no tax) is 649$, UK (20% VAT) is £599=728$ compared to 649*1.2=778.8.

the_mitsuhiko 10y ago

It was just changed to the new lower pound.

mhenr18 10y ago

Bingo. Many of us here in Australia complain about the prices being exorbitant - the same Apple computer that's marketed as $1,799 USD sells for $2,699 AUD. Take off the GST and you get $2,453 AUD. 1 USD = 1.32 AUD, and 1.32 * $1,799 = $2,374. So that's a $79 AUD markup on the product applied on Apple's part for buying it in Australia (with the rest being tax that's out of Apple's hands). Yes it's a non-zero markup but the AUD/USD isn't exactly a stable exchange rate so it makes sense that Apple won't align it to exactly the same amount. Consider that at the start of this year the US pricing of the MBP would have been equivalent to $2,621 AUD, and that in May it would have only been $2,302 AUD. Also consider that this time 4 years ago, the same $1,799 USD would have been $1,741 AUD. If you're a company that doesn't want to change its prices daily, it's hard to set a perfect price in international markets.

mikeash 10y ago
And keep in mind that most US states have sales tax which is not included in Apple's price. For example, that $1,799 computer would actually cost me $1,906.94, unless I cheated the system by buying from out of state and not reporting it. (Which is easy, and common, but technically illegal.)

salamander22 10y ago

The point being is that some models that didn't get an update yesterday had their price increased. For example, the Mac Mini range increased by between 15% and 16%.

mikeash 10y ago
Given that the pound has dropped almost 20% against the dollar, an increase of merely 16% is a pretty good deal.

Theodores 10y ago

Not being funny, but do Apple pay VAT or do they have some Double Irish tax dodge for that?