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No one would dispute that in both cases the UK price is higher, but concern over the post tax difference should be directed to the Government and not Apple. A 30% differential is not that large considering the other costs of doing business in the UK and off course hedging against currency fluctuations.

The tax difference is outside of Apple's control, of course. But (strictly speaking) not the entire "post tax difference", as this also still includes a pre-tax price difference along with tax on that difference ;)

Anyway, I was really only posting in expanded support of your calculation and in response to @motulist , to clarify how much of the US vs UK price variation is attributable to differences in taxation rates.
 
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Vat is currently 20%.

I know, that why I divided 9.99 GBP by 1.2 to get the pre sales tax price i.e 8.33 GBP

U.S. Prices do not include sales tax.

I didn't think they did, which is why I converted the UK price to the pre VAT price, that way they can be compared on an equal basis. Comparing post taxes prices is of little value when discussing if Apple are ripping people off.

There is also additional taxes/fee's that are not accounted for in your figures.
What are they? I'm not aware of any fees that apple levy. All my figures are pre Tax for the reason already mentioned.
 
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