We saw the example earlier of Turkey, where the same base iPhone 14 costs the equivalent of $1,700, or more than double the US price. Some countries charge Apple a percentage value of the retail price as an import tax. You can do equivalent sums for other countries where sales tax is included in Apple’s prices. So yes, UK customers are paying more than US buyers – but only $20 more, not $129 more.

Difference between US and UK pricing: $20.

So deduct that to get like-for-like pricing with US list prices: Let’s take the example of the base model iPhone 14.Įxcept that of that £849, £141.50 of it is sales tax (VAT).

This accounts for most of the price differential Consumers would not be impressed with Apple if they got to checkout and the company then added on an extra 20%. In most countries, consumers** expect to pay the price displayed.

The UK and EU countries also have sales tax, of course, in the form of VAT.īut the big difference here is that there is that VAT is included in the price shown. In the UK and EU countries, sales tax is included The reason Apple shows price without sales tax is because the percentage varies by state, and because Americans are used to seeing prices without tax. Only a handful of US states have no sales tax, enabling residents to pay the nominal price. Many are claiming that prices in other countries are much higher than in the US, and accusing Apple of price-gouging.īut while the price of the iPhone 14 and other Apple products is indeed eye-watering in many countries, that isn’t because Apple is trying to make more money … Apple’s US pricing is misleadingįirst, we have to note that the headline price shown on the US Apple Store isn’t the price paid by most Americans: They have to pay sales tax on top. There’s been a lot of dismay expressed at iPhone 14 prices in the UK, EU countries, and elsewhere.

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