4 ms·

Quite a lot of this has to do with VAT which is always advertised as part of the price. In most of these countries I know they have VAT rates over 20%. In the U

Quite a lot of this has to do with VAT which is always advertised as part of the price. In most of these countries I know they have VAT rates over 20%. In the US, sales tax is between 0 and 7.25 percent and is never advertised as part of the price. The US pays for this lack of VAT in other ways, either as taxes or in the services the government doesn’t provide. It’s easy to forget all this while having iPhone sticker shock, but it’s rather brilliant on the part of the governments since everyone is pissed at Apple for overcharging, not thinking about whether VAT is a good idea.

larsnystrom 4y ago
Swedish VAT is 25%, but the price is ~35% higher than the US. I think this is because the Swedish krona has lost value against the dollar over the last year, but I don’t think Apple has actually raised prices in Sweden (for the previous iPhone lineup).
- wodenokoto 4y ago
  It’s not just VAT. There are also import duties, taxes on salaries and land (there’s at least a warehouse, maybe also a physical store as well as a few pair of hands in play along the value chain of selling an iPhone in Sweden) Maybe salaries in Sweden are higher than us as well.
  - Yizahi 4y ago
    Apple tech sold in USA is also manufactured overseas, and should be subject to shipping, imports, salaries and so on.
    - wodenokoto 4y ago
      Yes and the difference of those adds to the difference of the end price.
  - larsnystrom 4y ago
    I don’t think those things matter much on the whole, and I also think Swedish (tech) salaries are actually lower than what they’re paying in the US. But the Swedish krona has lost ~22% against the USD in a year. So a 10% margin seems pretty reasonable given they haven’t raised prices during that year and nobody knows how the currency will fluctuate the upcoming year.
ajsnigrutin 4y ago
> It’s easy to forget all this while having iPhone sticker shock, but it’s rather brilliant on the part of the governments since everyone is pissed at Apple for overcharging, not thinking about whether VAT is a good idea. Oh, we're pissed at the government too... here in slovenia, we still have a "temporarily" higher VAT (literally called "crisis VAT") due to the 2008 economic crisis.
wodenokoto 4y ago
Isn’t it like 11% if you buy in New York? Like there’s a state and a government sales tax or something? I remember being quite disappointed on my potential savings when I was on vacation in the us and thought I could make a steal on a MacBook Air.
- dougmwne 4y ago
  There could be a local sales tax there. I was referencing the state rates which is what most people would pay.
Yizahi 4y ago
Other countries aren't messing with the price tags though. they simply show the final, total price to be paid. Like if you have that amount of cash and nothing more, you will get the ware you are buying. So in any practical case Apple is being dishonest (due to law) with pricing. Also let's not forget that when Euro was like 20% higher than Dollar, Apple pretended that 1 USD = 1 EUR. There are no possible "tax" or "laws" to weasel out of that, it was pure and simple price hike for no reason at all. (the VAT for EU was added on top of the already increased price due to incorrect conversion rate, so that wasn't it)

larsnystrom 4y ago

Swedish VAT is 25%, but the price is ~35% higher than the US. I think this is because the Swedish krona has lost value against the dollar over the last year, but I don’t think Apple has actually raised prices in Sweden (for the previous iPhone lineup).

wodenokoto 4y ago
It’s not just VAT. There are also import duties, taxes on salaries and land (there’s at least a warehouse, maybe also a physical store as well as a few pair of hands in play along the value chain of selling an iPhone in Sweden) Maybe salaries in Sweden are higher than us as well.
- Yizahi 4y ago
  Apple tech sold in USA is also manufactured overseas, and should be subject to shipping, imports, salaries and so on.
  - wodenokoto 4y ago
    Yes and the difference of those adds to the difference of the end price.
- larsnystrom 4y ago
  I don’t think those things matter much on the whole, and I also think Swedish (tech) salaries are actually lower than what they’re paying in the US. But the Swedish krona has lost ~22% against the USD in a year. So a 10% margin seems pretty reasonable given they haven’t raised prices during that year and nobody knows how the currency will fluctuate the upcoming year.

ajsnigrutin 4y ago

> It’s easy to forget all this while having iPhone sticker shock, but it’s rather brilliant on the part of the governments since everyone is pissed at Apple for overcharging, not thinking about whether VAT is a good idea. Oh, we're pissed at the government too... here in slovenia, we still have a "temporarily" higher VAT (literally called "crisis VAT") due to the 2008 economic crisis.

wodenokoto 4y ago

Isn’t it like 11% if you buy in New York? Like there’s a state and a government sales tax or something? I remember being quite disappointed on my potential savings when I was on vacation in the us and thought I could make a steal on a MacBook Air.

dougmwne 4y ago
There could be a local sales tax there. I was referencing the state rates which is what most people would pay.

Yizahi 4y ago

Other countries aren't messing with the price tags though. they simply show the final, total price to be paid. Like if you have that amount of cash and nothing more, you will get the ware you are buying. So in any practical case Apple is being dishonest (due to law) with pricing. Also let's not forget that when Euro was like 20% higher than Dollar, Apple pretended that 1 USD = 1 EUR. There are no possible "tax" or "laws" to weasel out of that, it was pure and simple price hike for no reason at all. (the VAT for EU was added on top of the already increased price due to incorrect conversion rate, so that wasn't it)