Cut in UK VAT means Macs cheaper for one year from next Monday

[Igantius]

fraud? , I'm no lawyer but it sounds fishy to me if a company does not pass on a reduced rate in VAT .

A lot of companies quote prices as inclusive of VAT without specifying what the rate of VAT is. Many companies will be raising the non-VAT price of their products, so that the price to the customer will remain unchanged (i.e. the companies will be able to pocket that 2.5% quite legally) -but happily that's not the case here.

On a less happy note, the Government were considering raising VAT to 18.5% after the next election but that seems to have been scrapped for now.... although some in the Government were pressing for it to go up to 20%....

 

[marbles]

Take the price from the US store in US dollars. Convert the price to British Pound at the current exchange rate. Add 17.5 percent for VAT. Compare to the price on the UK store. If both prices are exactly the same then Apple gets the same money. If the UK store price is lower than Apple gets less money from a Mac sold in the UK then from a Mac sold in the US. And that is the case right now.

Macs are sold at various prices around the globe , that doesn't mean Apple are subsidizing them in those places where the price is less than the US store .
Multi national corp's take this sort of thing into consideration when releasing prices for each individual country , might be wrong but I'm fairly certain that is the case , not subsidizing lol these machines are made in China and cost little to produce and in no way reflect the store prices .
Bottom line , Apple makes a profit( a big one too) , all the time on every machine , even ACD % machines etc .

rj

 

[allmIne]

I would be really surprised if not shocked if retailers did this, (though Woolworths could probably do with it at the moment!).

The point of the cut in VAT is not to help businesses, it's supposed to help kick start buying again in the shops. All it takes is for one retailer to drop their prices by the VAT cut and the others will have to do it.

If you were looking in Store A at a pair of 501's where they had cut the price, whereas in Store B they kept them the same price (and were in effect pocketing the 2.5%), where would you go for them?

People have said that there is a huge cost in relabelling everything. I don't think there necessarily is, it could be done at POS with 'ready-reckoners' up in the store - been to Debenhams/M&S/House of Fraser when they have their 20% days? Works fine then doesn't it?

The point is, I believe the stores will have to do this, (even though 2.5% is actually b****r all)!

As I said in my earlier post, I picked up a new MBP yesterday from John Lewis, and one of the reasons was because they had already knocked the VAT off ... I could have got it from Apple but £30 is better in my back pocket rather than Apple.

Just my 2.5%'s worth.

D

I understand your reasoning, and it does make sense. However, according to my economics professor (who I've no reason to disbelieve - I'd wager he knows more than most here) most stores - he quoted 80% - won't be passing the discount on.

It's fantastic that Apple are, but if anything, I'd have expected them not to. Their goods are available in relatively few outlets, and competition is much less than it would be for HMV, for example.

Oh, and as my girlfriend always tells me; don't keep your wallet in your back pocket! It'll get stolen!

 

[kolax]

John Lewishttp://www.johnlewis.com/Search/Search.aspx?SearchTerm=macbook+pro&Offset=1&refined=0 has already cut the VAT price - the MacBook Pro is £1,360 as opposed to £1,399.

I'd imagine Apple will update their online store soon too..

 

[BlizzardBomb]

Well, this will shut me up, they actually are lowering prices. Very welcome, especially on lovely expensive Apple products. Still believe price rises are in line for the iMac and Mac Pro when the updates come though, especially as it was £1 -> $2 at their release and now it's not even £1 -> $1.60.

 

[OllyW]

This is not surprising, although nothing leads me to think their prices will be reduced. Apple quote VAT inclusive prices and therefore the only change I envisage is the printing on the receipt 'includes Vat at 15%'.

Oh ye of little faith!

Apple have now changed their prices for the new VAT rate and have rounded down to the nearest pound to keep everything neat and tidy.

 

[redgaz26]

makes want to order my 24" even more now!!!!
but im still waiting for macworld

 

[eluk]

Oh ye of little faith!

Apple have now changed their prices for the new VAT rate and have rounded down to the nearest pound to keep everything neat and tidy.

Glad to be wrong, even though there is nothing I need.