Price comparison UK v US

Question

Level 2

277 points

Price comparison UK v US

I'm slightly confused as to why the Macbook is a lot cheaper in the UK to the US - we're both going through the Credit Crunch and it appears I could fly out to the US, buy a Macbook, and then fly back and still have money to spare compared to if I buy it in the UK. Here's the comparison at today's exchange rate:

Macbook 2.0:
UK: £949
US: £694 (£255 cheaper)

Macbook: 2.4:
UK: £1149
US: £853 (£296 cheaper)

Macbook Pro 2.4:
UK: £1399
US: £1068 (£331 cheaper)

Macbook Pro 2.53:
UK: £1749
US: £1334 (£415 cheaper)

It does seem a **** of a lot more more to buy a Mac in the UK compared to out neighbours over the pond!

MacBook Pro 2.2Ghz 4gb RAM, Mac OS X (10.5.5)

Posted on Oct 15, 2008 4:16 AM

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Answer 1

Best reply

Julian Wright

Level 8

35,014 points

Oct 15, 2008 4:37 AM in response to Alan Green

You've made a very common mistake in comparing the UK to US prices.

You've completely forgotten to take account of Sales Tax / VAT...

The US prices quoted don't include Sales Tax (which varies depending on the State you reside in), whereas the UK prices do (at 17.5%).

So, for a fair comparison, you should take 17.5% off all the UK prices, then compare to the US.

Macbook 2.0:
UK: £807 ex VAT
US: £742 (£65 cheaper)

Macbook: 2.4:
UK: £977 ex VAT
US: £914 (£63 cheaper)

Macbook Pro 2.4:
UK: £1190 ex VAT
US: £1143 (£47 cheaper)

Macbook Pro 2.53:
UK: £1488 ex VAT
US: £1429 (£59 cheaper)

You must let me know where you can get a return flight to the US for less than £65!! 😉

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Answer 2

Alan Green Author

Level 2

277 points

Oct 15, 2008 4:37 AM in response to Julian Wright

Arhhh, very good - thanks for that. That certainly clears it all up.

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Answer 3

Nick A

Level 4

1,522 points

Oct 15, 2008 12:00 PM in response to Alan Green

Regardless of your VAT mistake, the $1099 to $999 MacBook price break didn't happen here. We went from £699 for basic white to £719 for basic white!

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Answer 4

Oct 15, 2008 12:21 PM in response to Nick A

Indeed... price increases for us lucky folks in the UK.

No doubt Apple will blame it on the weakening pound against the dollar.

Funny how they didn't bother to adjust prices downwards while the dollar was worth less than toilet paper for the past year or so...

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Answer 5

dasein

Level 1

85 points

Oct 15, 2008 12:36 PM in response to Alan Green

From the consumer side, instead of removing 17.5% VAT, simply ADD state sales tax if you're considering taking a pleasure trip and purchasing while here (you may have to hide it in your hat returning through UK customs;-). State sales tax vary: http://en.wikipedia.org/wiki/Salestaxes_in_the_UnitedStates .

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Answer 6

Nick A

Level 4

1,522 points

Oct 15, 2008 12:43 PM in response to dasein

Easy really: put the macbook and it's accessories in your luggage and if you're randomly selected for inspection they'll think it's your computer (no VAT). If you enjoy retaining the packaging then break the box down so that it's as small as possibly and post it. An empty box will not be too expensive via sea. 🙂

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Answer 7

Ziatron

Level 5

4,186 points

Oct 15, 2008 3:59 PM in response to Julian Wright

The VAT Sales Tax IS part of the cost.

There is no VAT in the US because it depresses sales.

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Answer 8

Oct 15, 2008 4:13 PM in response to Ziatron

What?

*Sales Tax* in the US is the equivalent of what we in the UK call Value-Added-Tax (VAT).

Sales Tax varies from state to state and is added on to the price of goods.

http://en.wikipedia.org/wiki/Salestaxes_in_the_UnitedStates

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