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So $400 equals roughly £320 and yet the retail price on the UK store is £419 🧐 https://www.apple.com/uk/shop/buy-iphone/iphone-se/4.7-inch-display-64gb-white

by cbovis 6y ago

So $400 equals roughly £320 and yet the retail price on the UK store is £419 🧐 https://www.apple.com/uk/shop/buy-iphone/iphone-se/4.7-inch-display-64gb-white https://www.apple.com/uk/shop/buy-iphone/iphone-se/4.7-inch-...

wiredfool 6y ago
Vat is applied in the price in the UK, and sales tax is at checkout in the US.
- cbovis 6y ago
  Interesting, I'd find that super annoying as a consumer that's used to seeing the full price (ex. delivery) upfront. Is this standard practice for online US stores?
  - Hamuko 6y ago
    It's standard practice in the US, full stop.
  - adar 6y ago
    All stores in the US do this, online or brick and mortar.
  - wiredfool 6y ago
    There’s probably more than 10k potential sales tax rates in the US, so you get used to it.
    - anticensor 6y ago
      It is not like accountant does not calculate and pay the tax for each tax jurisdiction anyway.
  - deleted 6y ago
    [deleted]
  - lazerpants 6y ago
    It is annoying but taxes in the US are based on locality, so they involve state and municipal sales taxes, so it would be impossible to list one price for every customer.
nimish 6y ago
Vat accounts for most the difference, plus any increase to buffer currency volatility and cover the extra consumer rights.
zapnuk 6y ago
399$ equals 365.88€. With German VAT it's 435.40€ which is somewhat close to the 479€ Apple is asking for.
- MagnumOpus 6y ago
  Where "somewhat close" means more than 10% more expensive, same as for the UK. Maybe US consumers get a device subsidy because they are expected to buy more of the expensive apps and services, sort of like in a razor/blade model?
cletus 6y ago
As always, US pries are ex-tax (meaning state sales taxes are added on and can be as much as 10% depending on city and state). Most other places (UK included) as inc-tax. If you take out the 20% VAT you get to 349 GBP, which is ~437 USD at current exchange rates. That's not that far off.
- deleted 6y ago
  [deleted]

by cbovis 6y ago

wiredfool 6y ago

Vat is applied in the price in the UK, and sales tax is at checkout in the US.

cbovis 6y ago
Interesting, I'd find that super annoying as a consumer that's used to seeing the full price (ex. delivery) upfront. Is this standard practice for online US stores?
- Hamuko 6y ago
  It's standard practice in the US, full stop.
- adar 6y ago
  All stores in the US do this, online or brick and mortar.
- wiredfool 6y ago
  There’s probably more than 10k potential sales tax rates in the US, so you get used to it.
  - anticensor 6y ago
    It is not like accountant does not calculate and pay the tax for each tax jurisdiction anyway.
- deleted 6y ago
  [deleted]
- lazerpants 6y ago
  It is annoying but taxes in the US are based on locality, so they involve state and municipal sales taxes, so it would be impossible to list one price for every customer.

nimish 6y ago

Vat accounts for most the difference, plus any increase to buffer currency volatility and cover the extra consumer rights.

zapnuk 6y ago

399$ equals 365.88€. With German VAT it's 435.40€ which is somewhat close to the 479€ Apple is asking for.

MagnumOpus 6y ago
Where "somewhat close" means more than 10% more expensive, same as for the UK. Maybe US consumers get a device subsidy because they are expected to buy more of the expensive apps and services, sort of like in a razor/blade model?

cletus 6y ago

As always, US pries are ex-tax (meaning state sales taxes are added on and can be as much as 10% depending on city and state). Most other places (UK included) as inc-tax. If you take out the 20% VAT you get to 349 GBP, which is ~437 USD at current exchange rates. That's not that far off.

deleted 6y ago
[deleted]