Apple hikes price of new iPhone by £111 for UK buyers
BRITISH customers face huge mark ups on Apple’s new iPhone 7 and accompanying earphones compared with customers in the United States.
The smartphone, which was launched this week, will have a starting price of £599 in the UK for the cheapest model – £111 more than the $649 (£488) across the Atlantic.
Meanwhile the AirPod earphones come in at £159 compared with $159 in the US – a difference of more than £40.
Some of the difference can be explained by the fact that UK prices include VAT at 20 per cent, while the US figure does not include sales tax. But even taking this into account, British customers will still have to pay significantly more for the technology giant’s latest creations.
The figures fall into a pattern followed by many global brands. For example, the cost of Amazon’s Prime service is £79 a year in the UK but the equivalent of £ 74 in the US.
Trans-Atlantic fashion brands also often repeat the trend. Consumer group Which? said: ‘UK consumers are getting a raw deal by paying more for the same technology products on sale in the US. Manufacturers should play fair and explain why consumers pay more in the UK.’
Marc Gander, from the Consumer Action Group, said: ‘British consumers are constantly taken for mugs but it’s difficult to know what to do when there is no meaningful competition.’
International firms say price differences are down to the higher cost of doing business in the UK in terms of taxes and staff costs. They also say that currency fluctuations play a part.
Apple chief executive Tim Cook unveiled the iPhone 7 at an event in San Francisco. The decision to do away with a headphone jack and move to wireless AirPods has proved controversial, partly because of the high cost of the accessories.
The firm has also unveiled a new version of the Apple Watch, called the Series 2, which has a greater focus on health and exercise tracking. It will have a UK starting price of £369, including VAT, compared with $369 (£277) in the US.
The watch and iPhone 7 will go on sale on September 16.