Why is the new iPhone X £250 more in Britain than it is in America?

Rob Waugh

(Foto de Justin Sullivan / Getty Images).

When the world tuned in to Apple’s iPhone X launch this week, jaws dropped at the price of the new iPhone X – but it’s much, much more expensive in Britain.

In America, the gadget is priced at $999 (£750) – while in Britain, the official price is £999.

Part of the difference is sales tax (similar to VAT in Britain), which is applied at the till in America, meaning customers will pay tax on top, whereas in Britain it’s included in the price.

But in many American states, sales tax is around 7-8%, so it doesn’t account for all of the difference.

getty

But it’s more likely to have been a conscious decision on Apple’s part, due to the devaluation of the pound in the wake of Brexit, one analyst says.

 

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Matt King, Category Director, Technology and Media Research at Mintel, said in an interview with Mail Online, ‘Part of the reason is that the US market is so much bigger than the UK.

‘This means that in the US, brands like Apple can benefit from greater economies of scale on marketing and distribution costs.

‘But the devaluation of the pound in the wake of the Brexit vote is also a major factor.

Chart Rex

‘Apple is just one of several major technology companies to have increased its prices in the UK since the vote in June last year, citing the weakness of the pound as the reason.’

In the wake of the Brexit vote, Dell implemented a blanket 10% increase in the costs it charges to British retailers.

Chinese smartphone manufacturer OnePlus raised the price of its handsets by 10% in the months following the vote.

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