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Apple Bumps UK Prices as VAT Rises

Monday January 3, 2011 4:52 pm PST by Eric Slivka

Apple's new entry-level UK pricing


Apple today took down its online store in the UK for a few hours, moving to raise prices to account for an increase in the national value-added tax (VAT) going into effect today that is seeing the rate rise from 17.5% to 20%.

The price increases have resulted in Apple straying from its usual price point targets, as an entry-level 13" MacBook Pro or 21.5" iMac that previously cost £999 with VAT now goes for £1020, while the entry-level Mac Pro price has moved from £1999 to £2041.

Popular iOS devices have also increased in price, with the 16 GB iPhone 4 rising in price from £499 to £510 and the 16 GB Wi-Fi iPad going from £429 to £439.

Some observers had hoped that Apple might choose to simply absorb the tax increases by reducing their prices slightly in order to maintain the psychological price points used for many of their products, but the company obviously decided that it needed to pass along the tax increase to consumers in order to maintain its margins.


Apple's old entry-level UK pricing
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iBryton
18 months ago
That's unfortunate I guess?
Like we don't pay enough for Apple products..
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jetlife2
18 months ago
Sorry for UK consumers, but there was no need for Apple to absorb somebody else's tax increases as lower margins. They are not competing at the edge where 30 pounds is a decision factor.
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WannaGoMac
18 months ago
Wow, VAT is ridiculous! 20% is crazy. read studies that VAT didn't help maintain a lower overall cost of taxes as "theorized", the money was just spent by the politicians anyway. No wonder so many Europeans come to the USA for shopping trips and smuggle their purchases back in :)
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johnnymg
18 months ago
20% VAT is crazy high. No wonder people in the UK try to buy products via the underground.

JohnG
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daneoni
18 months ago

Some observers had hoped that Apple might choose to simply absorb the tax increases by reducing their prices slightly in order to maintain the psychological price points used for many of their products, but the company obviously decided that it needed to pass along the tax increase to consumers in order to maintain its margins.


lol.

Thanks a lot LibCons :rolleyes:

I really can't wait to emigrate.
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Mattsasa
18 months ago
I am too self centered to worry about the UK. The UK is not me so obviously it doesn't matter
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swingerofbirch
18 months ago
Are retailers required to advertise the price with tax? I don't know of anywhere that happens in the US except vending machines, but maybe that's because we don't have national sales tax.
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MattJessop
18 months ago
Sigh. It would have been nice if they had absorbed it, particularly given their high profit margins compared to other companies, and trying to keep the pricing simple. But oh well - it's not the end of the world, and I certainly would be any less put off by buying stuff for a tiny percentage. Sith happens.
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KnightWRX
18 months ago

Sorry for UK consumers, but there was no need for Apple to absorb somebody else's tax increases as lower margins.


Except for the fact that pre-VAT, Apple prices are higher in the UK than the US after currency exchange. In a sense, they are already making higher margins in the UK than the US and that is an incessant source of whining by our British folk on the forum.
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Yr Blues
18 months ago
And our politicians in America wants the same kind of VAT taxes. Value-Added, indeed. :rolleyes:
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