In other words all the official iPhone prices will actually cost up to 10% more in the respective US states?
However, how are those rather different state taxes are applied to the EU prices i don't get. Which state tax is being used?
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iPhone XR iPhone Xr and the Apple pricing in Europe
- Thread starter bmot
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In other words all the official iPhone prices will actually cost up to 10% more in the respective US states?
However, how are those rather different state taxes are applied to the EU prices i don't get. Which state tax is being used?
I remember when the dollar increased value over the euro, Apple raised the prices. Now the Euro is stronger than the dollar, the prices are still increasing :'')
Just an example.
The iPhone SX Max 64GB is here: € 1259 (including 21% tax). Without tax that's € 1041. Converted to dollars it will be $1216 (without sales tax!). In the USA the same phone is $1099 without tax.
Just an example.
The iPhone SX Max 64GB is here: € 1259 (including 21% tax). Without tax that's € 1041. Converted to dollars it will be $1216 (without sales tax!). In the USA the same phone is $1099 without tax.
Different tax systems.
In Miami - if your phone isn't stolen from your car - sales tax is 7%. So the phone really costs $800 (you're paying tax in Europe, too, it's just included in the price).
Europe likes to tax anything and everything so I'm surprised the price isn't even higher. Plus there's some volatility with currency in the area and I'm sure Apple is covering for that, too.
In Miami - if your phone isn't stolen from your car - sales tax is 7%. So the phone really costs $800 (you're paying tax in Europe, too, it's just included in the price).
Europe likes to tax anything and everything so I'm surprised the price isn't even higher. Plus there's some volatility with currency in the area and I'm sure Apple is covering for that, too.
Listed US prices rarely include sales tax. In Pennsylvania, I would add 6% to the $749, so I'd be paying $794. Other states have higher or lower (or none) tax rates.
But to address your original point, there are lots of things that go into international pricing. Import duties and consumer protection laws were both mentioned. Typically, Europe has higher duties and more consumer friendly policies than the US. These will both drive up prices.
Also, I would imagine (but not really sure), that Apple's operations in Europe cost more to run. For instance, an Apple Store employee probably (again, just a guess) gets a higher wage than the same employee in France. Multiply this by the number of employees and that's an added cost of selling in France.
Lastly, a part of the price differential is likely tradition. Europeans are used to higher prices, so Apple sets the price at a level the market will bear.
Others have already explained, but - yes - most US buyers will pay some additional percentage of state & local taxes. Typically less than 10%, though. States levy a range of taxes (usually in the 6% - 7% range), and some cities add a few more %. Altogether, NYC residents pay around 8.9%, Chicago folks pay 9.25%. Those taxes generally aren't applied to (most) clothing or food (unless it's from a restaurant). A luxury item like an iPhone is definitely subject to sales tax, wherever it's collected.
Just a note, the EU, as far as I know, has now import taxes on phones. Only VAT, depending on member state, but usually around 20%. I believe for all EU countries the displayed price is always with VAT included.
The XR will be £749 for the base storage here in the UK which already includes 20% VAT. To compare to other currencies:
The XR will be £749 for the base storage here in the UK which already includes 20% VAT. To compare to other currencies:
£749 is over 1,200USD?? That can’t be right surely?!
In the UK at least the correct word for cover that is included with the product is guarantee, with warranty normally referring to extra cover purchased by the customer
It's more expensive in China than the US too, even though they're made here? Can't possible be anything to do with regulations and taxes, clearly just Apple trying to get as much money as possible!
Seriously though, this comes up EVERY PRODUCT LAUNCH. It's cheapest in the US because of taxation and other reasons, it's more expensive elsewhere because of taxation and other reasons. The people of the US traditionally don't like taxes (re history), hence these tend to be on the lower side there. They price the things to make roughly the same profit in each area, this causes pricing differences when compared to the main currency (USD). People need to stop comparing it to what it costs in another country and just accept what it costs in theirs, what does it matter if it's cheaper in the US? Are you going to fly there and buy one, then fly back? Are you going to illegally bring it to your home country and avoid paying the import taxes to save the money? All credit if you do this, but just buy the thing and be happy, you could move to the US but be on a lower salary compared to home, then complain it costs too much still. I dunno, ymmv.
Seriously though, this comes up EVERY PRODUCT LAUNCH. It's cheapest in the US because of taxation and other reasons, it's more expensive elsewhere because of taxation and other reasons. The people of the US traditionally don't like taxes (re history), hence these tend to be on the lower side there. They price the things to make roughly the same profit in each area, this causes pricing differences when compared to the main currency (USD). People need to stop comparing it to what it costs in another country and just accept what it costs in theirs, what does it matter if it's cheaper in the US? Are you going to fly there and buy one, then fly back? Are you going to illegally bring it to your home country and avoid paying the import taxes to save the money? All credit if you do this, but just buy the thing and be happy, you could move to the US but be on a lower salary compared to home, then complain it costs too much still. I dunno, ymmv.