The iPhone is now substantially more expensive for UK buyers, following the launch of Apple's latest model. The firm's new 64GB iPhone X costs $999 in the US, which works out at £750 at the current exchange rate ¿ almost £250 less than the official UK price of £999

Apple’s new iPhone X is £250 more expensive in UK than US 

The iPhone is now substantially more expensive for UK buyers, following the launch of Apple’s latest model.

The firm’s 64GB iPhone X costs $999 in the US, which works out at £750 at the current exchange rate – almost £250 less than the official UK price of £999.

Experts have suggested a range of reasons for this price discrepancy, including the dollar to pound exchange rate and the fact that UK prices are quoted inclusive of VAT, while US prices will have sales tax added on at purchase.

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The iPhone is now substantially more expensive for UK buyers, following the launch of Apple's latest model. The firm's new 64GB iPhone X costs 9 in the US, which works out at £750 at the current exchange rate ¿ almost £250 less than the official UK price of £999

The iPhone is now substantially more expensive for UK buyers, following the launch of Apple’s latest model. The firm’s new 64GB iPhone X costs $999 in the US, which works out at £750 at the current exchange rate – almost £250 less than the official UK price of £999

IPHONE PRICING
ModelUK PriceUS PricePrice difference
iPhone X 64GB£999$999£247
iPhone X 256GB£1,149$1,149£284
iPhone 8 64GB£699$699£173
iPhone 8 256GB£849$849£210
iPhone 8+ 64GB£799$799£198
iPhone 8+ 256GB£949$949£235

Yesterday at its annual event, Apple released three new iPhone models – the iPhone 8, iPhone 8 Plus and highly-anticipated tenth anniversary device, the iPhone X.

All three devices have pound-for-dollar prices, meaning UK customers will be forced to pay more than people in the US.

The iPhone X starts at $999 (£999) for the 64GB model, and goes up to $1,149 (£1,149) for the 256GB version.

Meanwhile, the iPhone 8 ranges from $699 (£699) to $849 (£849), and the iPhone 8+ from $799 (£799) to $949 (£949).

According to This Is Money, there are a number of factors that come into play, including the dollar to pound exchange rate and the fact that UK prices are quoted inclusive of VAT, while US prices will have sales tax added on at purchase.

When a US-based firm such as Apple prices its products, it will use its home market as the baseline and then decide how much to charge overseas.

The fall in the pound against the dollar after the Brexit vote has driven up the cost of such goods and Apple products, such as Macs, iPhones and iPads, saw prices jump last autumn. In October, the price of a 13 inch MacBook air rose from £849 to £949.

Yesterday at its annual event, Apple released three new iPhone models ¿ the iPhone 8, iPhone 8+ and tenth anniversary device, the iPhone X (pictured)

Yesterday at its annual event, Apple released three new iPhone models – the iPhone 8, iPhone 8+ and tenth anniversary device, the iPhone X (pictured)

WHY IS THE IPHONE MORE EXPENSIVE IN THE UK?

According to MailOnline This Is Money, there are a number of factors that come into play, including the dollar to pound exchange rate and the fact that UK prices are quoted inclusive of VAT, while US prices will have sales tax added on at purchase.

When a US-based firm such as Apple prices its products, it will use its home market as the baseline and then decide how much to charge overseas.

The fall in the pound against the dollar after the Brexit vote has driven up the cost of such goods and Apple products, such as Macs, iPhones and iPads, saw prices jump last autumn. In October, the price of a 13 inch MacBook air rose from £849 to £949.

The pound started to fall a month before the EU referendum, which took place on 23 June 2016, tumbling 18 per cent from $1.46 to lows of about $1.20 between last October and March.

It has since regained ground to stand down 9 per cent on its pre-Brexit vote levels.

However, with £1 buying $1.33 even a fall in the pound doesn’t explain putting the iPhone X on sale at the same price tag in the UK and US.

Another factor does explain away some of the price difference. In the UK, the iPhone X’s price is quoted inclusive of VAT, which is charged at 20 per cent, whereas in the US it will be quoted excluding sales tax, which varies by state and is added on at the till.

Technology firms have used other excuses to defend higher prices in the UK, ranging from claims that the cost of doing business is higher than in the US and that they must supply chargers with different plugs to the standard US one.

The final reason for prices being higher here is that Apple knows that it can get away with charging more. There is a long history of Britons paying more than Americans for the same technology and that means that firms look at the UK market and decide they can price higher.

Other experts have suggested that high prices may be to control demand, at least to begin with.

Speaking to the Financial Times, Ben Wood, an analyst at CCS Insight said: ‘Rivals will be watching how quickly Apple can meet demand for the iPhone X and begin to build margins on a new design with new components.

‘The relatively high prices of the iPhone X are a necessary and important mechanism to control demand in the near term.’

However, with £1 buying $1.33 even a fall in the pound doesn’t explain putting the iPhone X on sale at the same price tag in the UK and US.

Another factor does explain away some of the price difference.

In the UK, the iPhone X’s price is quoted inclusive of VAT, which is charged at 20 per cent, whereas in the US it will be quoted excluding sales tax, which varies by state and is added on at the till.

The iPhone 8 (pictured) ranges from $699 (£699) to $849 (£849), and the iPhone 8+ from $799 (£799) to $949 (£949)

The iPhone 8 (pictured) ranges from $699 (£699) to $849 (£849), and the iPhone 8+ from $799 (£799) to $949 (£949)

Technology firms have used other excuses to defend higher prices in the UK, ranging from claims that the cost of doing business is higher than in the US and that they must supply chargers with different plugs to the standard US one.

The final reason for prices being higher here is that Apple knows that it can get away with charging more.

There is a long history of Britons paying more than Americans for the same technology and that means that firms look at the UK market and decide they can price higher.

Other experts have suggested that high prices may be to control demand, at least to begin with.

IPHONE X FEATURES

Following months of anticipation, Apple has unveiled the rumoured iPhone X

Following months of anticipation, Apple has unveiled the rumoured iPhone X

– Pronounced the ‘iPhone 10’

– Available in space grey and silver

– No home button – swipe up from the bottom to unlock or to go home from an app or to multitask

– ‘Face ID’ that allows users to unlock the phone by looking at it

– Qi and AirPower wireless charging that lets you charge multiple devices at once

– ‘Screen tap’ unlock

– Edge to edge display with glass on both sides of the device

– Super retina display using OLED technology – highest ever pixel density in an iPhone

– Dual 12 megapixel cameras and dual-optical image stabilisation

– Tuned for augmented reality capabilities

– Portrait lighting that uses machine learning to touch up photos

– A11 bionic chips with six cores, can be 70 per cent faster than the previous A10 chip

Speaking to the Financial Times, Ben Wood, an analyst at CCS Insight said: ‘Rivals will be watching how quickly Apple can meet demand for the iPhone X and begin to build margins on a new design with new components.

‘The relatively high prices of the iPhone X are a necessary and important mechanism to control demand in the near term.’

This pricing falls into a pattern followed by Apple, alongside numerous other global brands.

All three devices (pictured left to right - iPhone X, iPhone 8 and iPhone 8+) have pound-for-dollar prices, meaning UK customers will be forced to pay more than people in the US

All three devices (pictured left to right – iPhone X, iPhone 8 and iPhone 8+) have pound-for-dollar prices, meaning UK customers will be forced to pay more than people in the US

Games console brands like Xbox and Playstation routinely charge higher prices for their hardware in Britain.

Similarly, charges for streaming services like Netflix and Spotify are higher in the UK.

And the cost of Amazon’s Prime service is £79 a year in the UK, but a cheaper $99 (£74) in the US.

REACTIONS ON TWITTER

Several people have taken to Twitter to vent their frustration at the UK and US price difference for the iPhone X:

Posted on; DailyMail>>

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