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0 pointscbovis5y ago0 comments

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-...

0 comments

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.

1 more reply

wiredfool5y ago

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

cbovisOP5y 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?

adar5y ago

All stores in the US do this, online or brick and mortar.

lazerpants5y 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.

Hamuko5y ago

It's standard practice in the US, full stop.

wiredfool5y ago

There’s probably more than 10k potential sales tax rates in the US, so you get used to it.

1 more reply

nimish5y ago

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

zapnuk5y ago

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

MagnumOpus5y 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?

j / k navigate · click thread line to collapse

0 comments

cletus5y ago

1 more reply

wiredfool5y ago

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

cbovisOP5y 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?

adar5y ago

All stores in the US do this, online or brick and mortar.

lazerpants5y 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.

Hamuko5y ago

It's standard practice in the US, full stop.

wiredfool5y ago

There’s probably more than 10k potential sales tax rates in the US, so you get used to it.

1 more reply

nimish5y ago

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

zapnuk5y ago

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

MagnumOpus5y 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?

j / k navigate · click thread line to collapse