iPhone X Will Cost at Least £145 More In the UK Than the US

By James O Malley on at

Bad news for Britons as according to our back-of-the-envelope calculations, it appears that the iPhone X is going to cost significantly more in Britain than it will in the US.

So, the iPhone X will start in the UK from £999. That includes VAT. If you work that backwards, it suggests that Apple gets £832 for every iPhone X sold - and then Her Majesty's Revenue and Customs get 20% on top of that.

Meanwhile, in the US, the iPhone X will start at $999, and crucially, this price doesn't include sales tax (their equivalent of VAT, roughly speaking). This isn't particularly easy to compare, as each state and even some individual areas within each state set their own sales tax rates, but if you take New York as an example, that has an effective sales tax of 8.875% - which means that the iPhone X should retail there for $1087.66. Convert this into Great British Pounds and you end up with £818.36 - yes - £180.64 less than the UK price!

If you do the calculation with what Wikipedia reckons is the highest taxed state, Tim Cook's native Alabama, which has a tax rate of 13.5%, that works out as $1133.87 - or £853.12. £145.88 less than the cost in the UK. In Delaware, a state that has no sales tax, $999 is £751.55 - £247.45 less than the UK price!

And even if we lived in an imaginary fantasy land where America had a functioning welfare state and a sales tax of 20%, that would still work out as £902.57 - just under £100 cheaper than the UK price.

So if we're right - and we're prepared to be proven wrong on this, given that we're hastily trying to figure it out following the announcement - it appears that British consumers are getting a bit of a raw deal. If only there was an animoji to express our feelings right now.


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