The 128GB iPhone 14 in the UK s priced at 707 (excluding VAT) or around $818 at the current exchange rate which is $11 less than the price of the same phone in the U.S.
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Other iPhone prices are actually not bad
- Thread starter bobjonesco
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The 128GB iPhone 14 in the UK s priced at 707 (excluding VAT) or around $818 at the current exchange rate which is $11 less than the price of the same phone in the U.S.
VAT is factored in with every advertised price in the UK, so we pay little attention to prices excluding it in the rare cases where a VAT price is shown. Even with the sales tax applied in the US the cost still works out a lot cheaper.
The 14 Pro here is £1099 ($1270 USD) including VAT for example. How much sales tax is typically added to the original $999 retail price?
I realize VAT is factored in with ads but people blaming Apple for "high prices" can't also blame Apple for what some states, countries, etc. may charge for taxes or (also going on) pricing related to exchange rate fluctuations.
As far as the U.S. goes, sales taxes vary by state (and usually within a state) and can range from 0% to over 10%.
What Apple charges for iPhones in the UK (before VAT or state/local sales taxes) right now appears to be roughly the same as what they charge in the U.S.
Obviously the UK’s sky high inflation rate has affected prices here but I think people were hoping the prices with Apple would remain as the dollar vs the pound. In reality there has been a significant increase. Unfortunately Apple will also lose out from this scenario as the cost of living has risen to an almost impossible extreme and products in all industries right now are suffering from a steep decline in sales.
This forum is a bit of a vacuum where people will voice their displeasure at the higher costs, whereas non-tech enthusiasts will simply not upgrade or buy something much cheaper.
We still have high inflation here in the U.S. too but it does seem that dollar versus pound iPhone prices are roughly the same this year. In my 128GB iPhone 14 example, the UK price is £707 (before VAT) which is around $818 USD compared to the $11 higher $829 (before state/local taxes) for same phone in the U.S. $829 was the U.S. starting price of the iPhone 13 and 12 (which had 64GB) as well.
If iPhone prices are notably higher in the UK in recent years, it would likely be due to the stronger dollar which is not Apple's fault. Just as the VAT or sales taxes governments may charge are not Apple's fault. It's also possible that Apple had actually been selling at least some iPhones in the UK at a notable discount (to U.S. prices) in the past.
True.
Also true.
Indeed. Myself and no doubt many others have adjusted our spend habits for iPhones going forward. I now buy last years Pro and get the extra features rather than a 14 that has many features of the 13 Pro anyway. Works out cheaper too. A couple of people I work with are in the iUP scheme and have opted out this year due to the higher costs. We are lucky in this age that iPhones remain good for several years and maybe the higher prices will change demand where yearly or two yearly upgrades become less common. Something will break, people aren’t going to pay £849-£1600 for phones in the quantities people were upgrading in the past. Those days are behind us I think ultimately.
Or, the difference in exchange for the last decade+ made sense for apple to do a $1=£1, given that the “stronger” pound allowed for including stronger consumer protections/warranties and taxes. The value of the pound (and euro) has dropped significantly enough that the exchange rate is no longer covering those additional costs in those markets as required by apple. Hence increased prices.
But instead we will continue listening to those in Europe complain about their device pricing—despite the value added consumer protections their laws require (that doesn’t come free), included taxes, and the abysmal performance of both the euro and the pound vs the USD.
And all of this ignores that adjusted for inflation, iphone 14 is priced very comparatively to the vast majority of previous iPhone models. Creating new sizes and more advanced lines does not mean you can now use the 14 Pro Max as a baseline for iPhone pricing 🙄 inflation adjusted, the iPhone has started around a similar price point for the vast majority of its years.
Ex: iPhone 6S launched in 2015 at £539 €739 $749 which with inflation would be £718 €875 $935.
Starting prices for iPhone 14 are £849 €999 $799.
(These prices include tax in £ € but not for $, as this is the way they have always been advertised in their respective countries).
There is no denying that apple is keeping prices intentionally lower in their primary market. As for other markets, the prices are very much in line with past products a) adjusted for inflation and b) adjusted for the weakest the pound and euro have been for any meaningful measure of time in regards to iPhones.
It sucks, sure. But prices have clung pretty close to inflation calculations if you ignore the terrible performance of both of Europe’s primary monetary systems.
The value of the USD has risen over 17% YTD, and nearly 20% in the last rolling year (vs the pound). That’s not a sign of the pound being stronger than the dollar. (And the USD has risen around 14% YTD and 17% rolling year vs the Euro).
After adjusting for your currencies terrible performance in the last year, iPhones prices have had inflation adjusted prices within single digit percentage points of past models. More advanced technology year after year, and prices have effectively remained static.
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So what sort of money did you save going with a 13 pro?
There is a 4-5 week wait here for a 14 pro max 256gb at $2099AUD from apple anyway, only up $80 from last years.
Very true, but paying that money every year for "upgrades" that won't make you any more productive isn't very rational. Upgrading every few years is much more rational.
I saved about £150 over the iPhone 14 and £250 over the 14 Pro.
I buy on contract so look at the savings over 24 months. My total contract spend is less than the retail price of a 128GB iPhone 14 Pro.
The iPhone 14 Pro is £150 more expensive at launch than the 13 Pro was and the 14 Pro Max is £160 more.
Wow that's a jump, that's like $275AUD, 14 max went up about $80AUD here.
I thought we were getting screwed over lol
In the UK for the same model that I currently have (13 pro max 256GB ) it is £170 more for the 14 pro max with the same storage.
I also did the same. Got the 13 pro max and series 7 just before the keynote to save some money.
I think we all are outside of America, although their sales tax differs apparently. I’m happy being a year behind from now on if it saves a couple of hundred quid to be honest.
Yeah it’s a good tactic this year. I haven’t got a series 7 yet but my daughter wants my Series 5. Still looking for a deal on that one and was hoping to get a stainless a bit closer to the 400 quid mark but might have to stick with aluminium which is also fine.
My wife had the 13 Pro Max and thinks she’s made a mistake in terms of the size and weight. I might end up having to swap with her which i’ll do reluctantly. Don’t want the hassle of returning now I’ve given my iPhone 12 away
My wife has a 12 max in a nomad folio, she does carry it in a bag not pockets. 13 max is heavy for sure, if I had to walk around a lot for work I would be downsizing, mainly in car and office for me, even still been thinking about the smaller pro.Yeah it’s a good tactic this year. I haven’t got a series 7 yet but my daughter wants my Series 5. Still looking for a deal on that one and was hoping to get a stainless a bit closer to the 400 quid mark but might have to stick with aluminium which is also fine.
My wife had the 13 Pro Max and thinks she’s made a mistake in terms of the size and weight. I might end up having to swap with her which i’ll do reluctantly. Don’t want the hassle of returning now I’ve given my iPhone 12 away
Get her to use it for a few weeks she might get to like it.
What year(s) was that? When the iPhone came out in 2007, the exchange rate was around $2 for every £1.
Yes, in 2007 it was around $2 for every £1.
However, my question still is... when was it the "2 pounds for every 1 dollar" you stated in comment #73 or the "£2 sterling for every $1 dollar" you also stated in comment #93??
The reason I had originally asked is because I think you had it reversed.
It wasn’t until after Brexit that the pound started loosing its power against other currencies
In 2007, the exchange rate was around $2 for every £1 and the U.S. dollar has only been stronger (with some ups and downs along the way) in years since. It is currently around $1.14 for every £1.
Now that is clear, I will go back to your other previous comment...
When the iPhone launched in the UK, the price for the 8GB phone was £229 (excluding 17.5% VAT) but, like it the U.S., the price was reduced to £144 (excluding 17.5% VAT) months later.
Adjusting to U.S. dollars at that time, £229 would've been around $458 and £144 would've been around $288. These prices are actually a lot less than pre-sales tax U.S. prices at the time which were $599 initially and then $399. All prices were with carrier contract commitments.
So, yes, in this case it does look like the iPhone was vastly cheaper when the exchange rate favored the £ more. Apple appears to have been selling iPhones in the UK at a notable discount versus U.S. prices back then.