The Really Mobile Project on an iPad

Stop complaining about UK iPad prices. They're fine.

by Ben Smith on 10th May 2010

  Comment Icon20

iPad prices in the UK are not excessive compared to US pricing. If you want to whine about ‘rip-off Britain’ you’ll need to find some other reason to do it. I suggest you pop over to the Daily Mail* where you’ll find an equal number of other clueless people.

* No, I’m not linking there.

OK… before I go any further I need to apologise… This is a rant. I’ve given up trying to be reasonable and balanced on this. It’s just that this cycle has become tediously predictable with every international Apple product launch:

Apple announcement » Excitement » US launch » Prices in £ » Complaining…

My argument is simple: when excluding sales tax from the price of the iPad the difference in cost between US dollars and UK pounds sterling is:

  1. so small as not to be worthy of comment; and
  2. reasonably explained by normal exchange-rate fluctuations.

Don’t confuse this with a completely separate argument - whether the iPad (or any Apple hardware) is value for money - that is completely subjective.

Here are the numbers taken from the US and UK Apple Stores today:

iPad PricesThose figures are based on today’s Google-provided exchange rate of £1 = $1.48 (that link is a live figure so it will vary). The average difference is 5.8% in favour of the US. However, according to the BBC the fluctuations between the pound and the dollar has been around 15% in the past 12 months. There certainly is a price difference, but still think it’s a big swindle?

It’s certainly true that the price differences there are between UK and US prices varies between Apple’s products, but they all follow this pattern and (for lower value goods) are normally more driven by rounding to the nearest suitable sales price. Now, stop complaining and get to your local airport’s duty free. With the price controls Apple insist on for their products they are genuinely cheaper there than even the best retailers’ discounts.

If you really want to complain about the main source of actual price difference, write to your MP about lowering VAT or just ask your shop not to include it on the sticker-price. The latter option’s far more likely for the next 20 years of government borrowing repayment…

Tagged as: iPad, pricing, UK, us

  • http://www.reinvent.ro Catalin Giboi

    The VAT issue is really frustrating when comparing any product from US to Europe. Also, import tax applies (to some countries, I know some in EU still have import tax for US/China, depending on where it’s coming from).

    One way to get cheaper European products is to have an Llc (or Plc in UK) and then have VAT reimbursements. The best way is to have a Vanuatu (for example) registered company and be done with it. You don’t pay VAT at all when purchasing in Europe. - I know I’m a bit off from this website’s topic with this, but this is my rant towards national VATs as I spend quite some time figuring out how to avoid paying to much tax :D

  • http://twitter.com/Ratkat Nick Robinson

    I agree but one observation….

    2TB Time Capsule $499 in US Store = £388 in UK Store.

    16GB iPad $499 in US Store = £429 in UK Store

  • http://twitter.com/TheProdigalFool The Prodigal Fool

    I agree.

    I’d originally hatched a rather complex plan to get an iPad sent over to me from the States. When they announced the UK pricing, my scheming came to a screeching halt. It was far easier to simply order one from the UK store and, as you say, not significantly different from a price perspective.

    Stayed up till 1:00 last night and ordered mine: 32GB 3G model. Can’t wait…

  • http://mostlythis.com Mac Morrison

    yada yada moany winge

    http://nicksweeney.com/2008/01/15/the-standard-apple-uk-surchage/

    it follow the exact same price conversion that EVERY apple product uses
    as pointed out by nick sweeney several years ago….

    The Standard Apple UK Surcharge

    15.01.2025 in &c.

    The Apple Store numbers are somewhat deceiving, because US prices exclude state sales tax, which is paid by most buyers, while UK prices include VAT. But the standard rule of thumb for working out how much extra Apple screws out of British customers is as follows:

    Convert the US price, add VAT, stick 10% on top for shits and giggles, then round up to the nearest £49 or £99.*
    * Unless it’s under £100, where you round to the nearest £5 or £9. Leopard’s $129 became (£65 + VAT) + 10% = £84, rounded up to £85.

  • http://benjam.in Ben Smith

    Oooo… I wasn’t aware of this, but he’s right and it’s spot on. Excellent.

  • http://www.reinvent.ro CGiboi

    The VAT issue is really frustrating when comparing any product from US to Europe. Also, import tax applies (to some countries, I know some in EU still have import tax for US/China, depending on where it's coming from).One way to get cheaper European products is to have an Llc (or Plc in UK) and then have VAT reimbursements. The best way is to have a Vanuatu (for example) registered company and be done with it. You don't pay VAT at all when purchasing in Europe. - I know I'm a bit off from this website's topic with this, but this is my rant towards national VATs as I spend quite some time figuring out how to avoid paying to much tax :D

  • http://www.reinvent.ro CGiboi

    The VAT issue is really frustrating when comparing any product from US to Europe. Also, import tax applies (to some countries, I know some in EU still have import tax for US/China, depending on where it's coming from).

    One way to get cheaper European products is to have an Llc (or Plc in UK) and then have VAT reimbursements. The best way is to have a Vanuatu (for example) registered company and be done with it. You don't pay VAT at all when purchasing in Europe. - I know I'm a bit off from this website's topic with this, but this is my rant towards national VATs as I spend quite some time figuring out how to avoid paying to much tax :D

  • http://twitter.com/Ratkat Nick Robinson

    I agree but one observation….2TB Time Capsule $499 in US Store = £388 in UK Store.16GB iPad $499 in US Store = £429 in UK Store

  • http://twitter.com/Ratkat Nick Robinson

    I agree but one observation….

    2TB Time Capsule $499 in US Store = £388 in UK Store.

    16GB iPad $499 in US Store = £429 in UK Store

  • http://twitter.com/TheProdigalFool The Prodigal Fool

    I agree.I'd originally hatched a rather complex plan to get an iPad sent over to me from the States. When they announced the UK pricing, my scheming came to a screeching halt. It was far easier to simply order one from the UK store and, as you say, not significantly different from a price perspective.Stayed up till 1:00 last night and ordered mine: 32GB 3G model. Can't wait…

  • http://twitter.com/TheProdigalFool The Prodigal Fool

    I agree.

    I'd originally hatched a rather complex plan to get an iPad sent over to me from the States. When they announced the UK pricing, my scheming came to a screeching halt. It was far easier to simply order one from the UK store and, as you say, not significantly different from a price perspective.

    Stayed up till 1:00 last night and ordered mine: 32GB 3G model. Can't wait…

  • http://mostlythis.com Mac Morrison

    yada yada moany winge

    http://nicksweeney.com/2008/01/15/the-standard-…

    it follow the exact same price conversion that EVERY apple product uses
    as pointed out by nick sweeney several years ago….

    The Standard Apple UK Surcharge

    15.01.2025 in &c.

    The Apple Store numbers are somewhat deceiving, because US prices exclude state sales tax, which is paid by most buyers, while UK prices include VAT. But the standard rule of thumb for working out how much extra Apple screws out of British customers is as follows:

    Convert the US price, add VAT, stick 10% on top for shits and giggles, then round up to the nearest £49 or £99.*
    * Unless it’s under £100, where you round to the nearest £5 or £9. Leopard’s $129 became (£65 + VAT) + 10% = £84, rounded up to £85.

  • http://mostlythis.com Mac Morrison

    yada yada moany wingehttp://nicksweeney.com/2008/01/15/the-standard-…it follow the exact same price conversion that EVERY apple product usesas pointed out by nick sweeney several years ago….The Standard Apple UK Surcharge15.01.2008 in &c.The Apple Store numbers are somewhat deceiving, because US prices exclude state sales tax, which is paid by most buyers, while UK prices include VAT. But the standard rule of thumb for working out how much extra Apple screws out of British customers is as follows:Convert the US price, add VAT, stick 10% on top for shits and giggles, then round up to the nearest £49 or £99.** Unless it’s under £100, where you round to the nearest £5 or £9. Leopard’s $129 became (£65 + VAT) + 10% = £84, rounded up to £85.

  • http://benjam.in Ben Smith

    Oooo… I wasn't aware of this, but he's right and it's spot on. Excellent.

  • http://benjam.in Ben Smith

    Oooo… I wasn't aware of this, but he's right and it's spot on. Excellent.

  • Anonymous

    The lack of printing support and or built in webcam are far greater issues than the price. I can think of at least one school administrator that would have bought them en-masse if only for the former, and with both I’d have bought one right away. As it is, it’s a nice toy for browsing. No doubt Steve will unveil these revolutionary features to the cooing masses in the next version but he really missed a trick with the first release.

  • Kelv

    The lack of printing support and or built in webcam are far greater issues than the price. I can think of at least one school administrator that would have bought them en-masse if only for the former, and with both I'd have bought one right away. As it is, it's a nice toy for browsing. No doubt Steve will unveil these revolutionary features to the cooing masses in the next version but he really missed a trick with the first release.

  • Kelv

    The lack of printing support and or built in webcam are far greater issues than the price. I can think of at least one school administrator that would have bought them en-masse if only for the former, and with both I'd have bought one right away. As it is, it's a nice toy for browsing. No doubt Steve will unveil these revolutionary features to the cooing masses in the next version but he really missed a trick with the first release.

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