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Apple Bumps UK Prices as VAT Rises
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That makes sense, but after reading your comment I was interested so I did a little googling and I found out that what you said is true of *many* business costs, but is definitely NOT true for a very significant amount of business costs, and this definitely must account for a significant portion of Apple's higher prices in the UK.
Quote from wiki:
http://en.wikipedia.org/wiki/Value_added_tax#European_Union
Last I checked, UK gas prices are still higher than gas prices in the USA. Obama and the liberal left like to chastise as evil and greedy, the oil companies that "benefit" from higher gas prices. Since UK gas is higher, and with all that money those oil companies are making, what would that make them in Obama's eyes.
Couldn't the government just absorb some duplicate government jobs? How about a wage decrease for the politicians? A 10% across the board budget cut of all government departments? Deal with fraud and abuse of taxpayers money? Delete the antiquated government programs that have been on the books for 50, no wait, 100 years... You know there is bound to be some!
Bite Apple in the arse?... Doubt it. All those rioting over university tuition increases didn't prevent the raise from happening. So are people just going to quit school so they can get a lower paying job and have a lower standard of living just to spite those who raised your rates?
Finally, I see the mentality is not just an American one... Sadly! However, when is it that one will say, "When will the government do with less?". You say Apple can absorb the increase. I bet the analysts and politicians were expecting the same. Why?! What is the government's budget? What!!! You're kidding right! And they want MORE on top of ALL they are getting now! What a bunch of greedy bastards those politicians are!
No, you're wrong - and the quote you've quoted doesn't support your assertion (thigh I put in bold).
The system is specifically designed to avoid the double-charging of VAT.
Now, Apple does have an increased cost of doing business due to other taxes, but VAT will be a negligible part of that.
Yeah but you are an emerging market. In 50 years you will be flying around in levitating cars while we in the US and Europe will be working in the factories assembling gadgets for you and the Chinese.
If it is a negligible part of Apple's increase cost of doing business. Is it not just as negligible of an increase of expense on the consumer?! It's not as if it will be a recurring monthly charge.
Higher Operating and transport costs, import taxes, etc.. all add to the price increase. Apple, to my understanding, is not the only business that has higher prices in the UK compared to the U.S.. Actually, it seems this (higher prices) is more the rule than the exception, understandably so.
When the VAT was dropped from 17.5% to 15% in 2009, I did NOT recall that Apple passed on the savings to consumers in the form of lower sale prices.
You could of course stop wasting money ... The best way to lower a deficit is to reduce spending and greatly increase jobs (proven throughout history). Taxes sound great but you actually reduce the number of jobs and end up breaking even or losing money.
Create jobs, jajaja ROFL oh that a good one, thanks for the laugh. At one hospital I was doing work for they just let go of 50 nurses I am sure they will get more positions really fast oh wait no they will not. But the cool robots they are introducing in the ER was dam cool wild to see them work.
8.517% in my county (Oklahoma) which is high in comparison to the more sparsely populated counties surrounding it.
I haven't bought a Mac in a while, most tech purchases as of late were from Newegg where the tax is 0%. Awwww yeeeaaahhhh.
I don't recall apple lowering their prices when the VAT was temporarily reduced to 15% last year
Hey you can't blame apple.
"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."
Hey apple needs to make its 5 kabillon a year.
"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."
Hey apple needs to make its 5 kabillon a year.
I don't recall apple lowering their prices when the VAT was temporarily reduced to 15% last year
Someone just said the exact same thing a couple posts above yours, and I'll give you the same response I gave them.
You may not recall it, but they did.
