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Apple Bumps UK Prices as VAT Rises
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Exactly - the issue isn't Apple's prices but the tax. Get angry at the tax increase and not Apple....
It is normal for shops to include VAT, but I'm not aware of it being a legal requirement.
Generally if a retailer does not include VAT, they will make this clear next to the price.
This is often true of wholesale retailers that mostly sell to businesses (they can claim the VAT back).
Sad world we live in now. More taxes... higher cost... less work. Seems to be the trend in many countries.
As others have noted, Apple charges UK consumers more before tax - so people feel that they could afford to absorb some or all of the VAT increase.
Many other retailers will be doing this.
^^ this ^^
All those boasting about their 'free' higher education applecare gotta wonder where it all comes from
.And LOL at Apple absorbing the cost. When has Apple ever absorbed anything; save for free iPhone case or iPhone gift card for early adopters every now and again. That was because of their own fault though.
Of course Apple has to raise the prices. The friggin tax will reduce sales, not to mention increase unemployment and drive the UK straight back to the Stone Age. If the U.S. ever tries to introduce a VAT tax, there WILL BE a full-on revolution.
I dont understand why some UK members are complaining. i dont expect Apple to pick up the sales tax in the US.
Missed opportunity to create some positive buzz. A small price cut on the day prices went up everywhere would have created some great PR, and they could have adjusted prices later when the respective models got updated.
The already overpriced AppleTV's rise of £2 that destroys its psychologically powerful sub-£100 price is particularly hilarious/sad.
The already overpriced AppleTV's rise of £2 that destroys its psychologically powerful sub-£100 price is particularly hilarious/sad.
I never noticed how high the mark up on the Apple TV is!
It's about £26 ($40 US) more expensive in the UK!
And we don't get third party video rentals (Netflix), iPlayer or cheap TV episode rentals. Poor value.
Welcome to UK Austerity Measures...
Uk government is now paying for the bonds it bought to bail out reckless corporate debt in the UK...
Uk government is now paying for the bonds it bought to bail out reckless corporate debt in the UK...
Companies don't pay taxes, people do!
The UK politicians may have hoped companies would absorb the tax increase but it is not their obligation to and they should not! By Apple raising the prices, it reminds us all about tax increases, fees and other government obligations placed on companies. Apples job is to develop great products that we want and are willing to pay for to provide a return for their investors. It is the consumers who will pay the taxes and fees one way or another!
The UK politicians may have hoped companies would absorb the tax increase but it is not their obligation to and they should not! By Apple raising the prices, it reminds us all about tax increases, fees and other government obligations placed on companies. Apples job is to develop great products that we want and are willing to pay for to provide a return for their investors. It is the consumers who will pay the taxes and fees one way or another!
It's the other way 'round. They're paying the interest on the bonds they issued.
The bonds they bought are in the money and doing well.
And the problem is more about the size of government, and the generosity of welfare.
A large majority of retailers are doing this - Amazon are doing it on many products if you want a large online example.
They are very concerned about people not spending as much following the rise, so they're keeping some products at the same price.
Fascinating. Are they advertising this in such a way that consumers see the tax and that Amazon is covering it for them, or is it not visible at all?
yes...
Governments created the banks for banks to lend money on loans that were supposed to be secure under governance and regulation... banks over extended... governments now pick up the mess left by the banks and lenders... banks have no equity to cover their repayments and fold.
But governments bailed out the banking systems to avoid collapse of the system of which banks had lent more than they were receiving in revenue via the intra-banking loans...
Governments created the banks for banks to lend money on loans that were supposed to be secure under governance and regulation... banks over extended... governments now pick up the mess left by the banks and lenders... banks have no equity to cover their repayments and fold.
But governments bailed out the banking systems to avoid collapse of the system of which banks had lent more than they were receiving in revenue via the intra-banking loans...
There is two groups, the Dems want this in addition to our income tax (bad idea) and there are those that want a VAT in exchange for eliminating all other forms of taxes. The later may not be so bad? We only pay when we spend!
I don't think any retailers are actively promoting it.
I bought "Call of Duty: Black Ops" for the Xbox 360 on Amazon.co.uk last week (under the old VAT rate)
It cost me £39.99 including VAT ($61.96 US)
If I look at the order in more detail, the item cost £34.03 without VAT (leaving £5.96 of VAT)
If you go on Amazon.co.uk right now, the item is still there for £39.99
If you place an order, it'll show you that the item costs £33.33 without VAT (£6.66 of VAT).
Amazon loses £0.70 as a result - they obviously feel that the price point is good for that product.
Notably, Amazon has raised the price of the Kindle today to reflect the new VAT rate. Although that is pretty fair as it's still actually cheaper in the UK than the US!
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Why not give Pre-VAT prices?
In the U.S., Apple advertises the before-tax prices of its products, just like everyone else.
Why not advertise the pre-VAT price of its products in England?
Is it illegal to advertise the pre-VAT price in England?
After all, the tax on products varies from country to country.
The actual price before taxes is what the product's advertised price should be. This way, England can do what it wants with the VAT tax. But Apple's advertised prices will be the same everywhere in the world.
In the U.S., Apple advertises the before-tax prices of its products, just like everyone else.
Why not advertise the pre-VAT price of its products in England?
Is it illegal to advertise the pre-VAT price in England?
After all, the tax on products varies from country to country.
The actual price before taxes is what the product's advertised price should be. This way, England can do what it wants with the VAT tax. But Apple's advertised prices will be the same everywhere in the world.
Traditionally people in the UK expect to see the price inclusive of VAT when they buy a product.
Most people consider a price that doesn't include VAT to be slightly misleading because of this.