Only because of tax.
You can't hold Apple responsible for the Governments monetary policies. the iPhone is one of the cases where there isnt much of an Apple tax by buying in the UK
Price before VAT in the UK is £220, about $440. An Apple tax of £20 that is somewhat justified by how much more expensive it is to do business in the UK.
Slightly off topic, but I can't believe how much you guys put up with over there. Not only do you get price-raped on EVERYTHING, but it's turning into a 1984-esque police state at an alarming speed. Or does it just seem that way from the outside?