Apple defends itself over higher iPhone prices in the UK
Brits pay £249 more than Americans for the new iPhone X.
Apple has defended itself against mounting criticism over higher iPhone prices in the United Kingdom.
The tech firm said the reason the price of the new iPhone X is considerably higher than the same model in the United States, is because of foreign exchange rates, taxes and distribution costs, according to a report published on MSN Money.
The iPhone X costs £999 in the UK, while in the United States consumers can get their hands on exactly the same model for US$999 – once you convert the UK price into dollars it leaves a difference of £249.
The iPhone 8 and 8 Plus models are also priced the same in pounds and dollars, and experts have said it could put customers off purchasing the devices in the UK because consumers might feel cheated.
One media outlet even went as far as to point out that it would work out cheaper to buy a cheap return flight to New York, purchase a new iPhone there then fly back to the UK with the device.
An Apple spokesman said the UK’s 20% VAT and other costs, such as distribution and exchange rates are major factors in the price difference.
“Apple sets the pricing for its products in US dollars and then adjusts internationally to account for foreign exchange rates and channel distribution costs,” Apple said in a statement. “In the US pricing does not include sales tax, which varies from state to state, whereas in the UK pricing includes VAT at 20%.”
However, eagle-eyed money experts point out that even without VAT, the iPhone X will still cost £80 more than in the United States, which suggests there are further expenses calculated into the price difference.
- Cheaper holidays revealed on 2nd anniversary of Brexit vote
- Major credit cards get interest rate rises
- Where to livestream Belgium vs Tunisia FIFA World Cup 2018 online in UK
- Where to livestream Nigeria vs Iceland FIFA World Cup 2018 online in UK
- Where to livestream Brazil vs Costa Rica FIFA World Cup 2018 online in the UK