Why absurd price difference between US and UK Apple store?

Klaus is right -- It's the built-in taxes!

We do not pay VAT in the US. The prices quoted on the US Apple Store do not include Sales Tax, (which varies by state). In my state (Massachusetts) that is about 6 percent. It is higher in New York, and there is a local New York City tax as well for items delivered in New York City. My recollection is that runs the taxes up to a whopping 11 percent.

In the USA you have to add all taxes to the price listed in the USA Apple store. I think the UK Apple Store listed price include the VAT tax.

Import duty (not payable in the US) and our 25% VAT - far higher than taxes in the US.

Change the Government next year! 🙂

You still haven't factored in import duty, but in any case prices in the UK are always higher than anywher else.