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I am a US citizen living int he UK. I am always amazed by the complaining here about the price of imported goods. The whining about taxes also gets old.

So, yes, it appears the iPhone costs more in the UK, but:
  1. The differences is due mostly to taxes. Those taxes pay for services that US residents have to buy privately, such as health care. My elderly father in the US has paid more than $800,000 on medical bills, and in spite of earning nearly $3000/month in pension and having the same health insurance as members of Congress, he is now indigent. I personally prefer paying my taxes for the NHS to being a victim of the US medical industry.
  2. The £ has fallen in value with respect to the $. All of us in the UK had better get used to that if we don't start addressing our trade imbalance.
  3. In the US the iPhone is locked to AT&T - this devalues the phone compared to the UK where we have many network providers.

Finally, for what it is worth, I have no doubt the oil spill was the joint responsibility of corrupt US officials/inspectors and greedy BP executives, so it is a joint US-UK problem.

QFT. People need to take in to account all these factors. Simply converting the price of the phones from £ - $ is rediculous.
 
From my experience of buying every other phone sim free, including Apple's 2G, 3G and 3GS - about £300-£400 is the standard.

£600 is ridiculous.

The 1st Generation iPhone WITH a contract cost £279.

The 8GB 3G without a contact on pay as you go (Still locked to O2) cost approx. £350.

The 16GB 3GS on pay as you go cost approx. £450, and the 32GB cost approx. £550.

You're paying a £50 extra for the phone to be completely unlocked and the fact that it has greater features than the previous generations.
 
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