Strange, iPhones are assembled in China, so why is import tax required? The device is being built in China itself.
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PRICE REVEALED!!!! iPhone [8] X Edition to come only in 128 & 256 GB
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Strange, iPhones are assembled in China, so why is import tax required? The device is being built in China itself.
I believe china imposes a certain tax towards Apple for products sold in china.
This way, they can avoid apple being a hugely dominant industry in the chinese market.
Whether you like it or not, apple is an american company, so it's only logical they don't want dominance from a US company on their own territory.
I was planning on selling up most of my stuff and then just buying it back over there. With the current exchange rate that might not be possible. Just bought my girlfriend a car and used Transferwise to move money and got around 1.3. Wish it was more :/, guess this is what I have to live with after voting for Brexit.
Especially as here in the UK we have to pay VAT too
Almost everywhere else has to pay a sales tax that is similar to VAT. Only difference is our sales tax is not included in advertised price. It is just added after at the cash register instead of being included in the advertised price.
I pay 12 % in Canada. Save your frowny face for something else
12% is comparable to cities like Seattle (10.1%). UK pays 20%.
That may be so but take away VAT and UK prices seem quite similar to US. I checked retail price of the 7+ 32GB on Apple Store UK and it's £719. Pretax, that's ~£599 or ~US$774. MSRP in the US is $769. That's just $5 difference.
In Europe we have higher taxes, and you're right we should complain with our government about that.
Anyway Apple doesn't apply a fair currency exchange to the base price, I'll give you an example
iPhone 7
USA no taxes -> $649, with California taxes $709
Italy we have a price of €799, including about 150 of taxes so without our expensive VAT we'd pay €649. It is like saying $1 = €1
So for iPhone 7 32GB
€799 = $949 (vat included)
€649 = $770 (no taxes)
Even if you exclude taxes, we pay a lot more: $649 -> $770
France and Germany have similar prices, they pay only a few $ less than us. I don't know about the UK since they have another currency.
I understand they want to avoid losing money due to exchange rates changing over time, so I wouldn't complain about a small increase in price, but we're talking about 20% more, that's too much.
If the price of iPhone 8 will be $999 as rumored it will cost a little more than the maxed out 7s+, so about €1200, and that's more than $1400 at current exchange rate.
Some people will still buy it I'm sure, but it would cost too much for the majority of customers.
Maybe Europe is not an important market to Apple, I don't know, but they can't expect to sell tens of millions of phones with that price in the EU.
I could afford it, but I'm not paying so much for a phone, I'll keep my 6s for a longer period of time just like I'm keeping my Mac for another year, since even their Mac prices are exaggerated.
Very well explained post. The difference with Mac & iPhones is that most macs are bought outright but most phones are bought via a carrier contract. So the amount gets divided into 24 months. Normal people will still be able to afford it.
Can't just convert currencies and say that'll be the price - the current 7 Plus in China is RMB 6,388/RMB 7,188/RMB 7,988. So, exactly the same as the price for the 7s Plus in this 'leak'.
If this is correct, it puts the '8' (or whatever they call it) at just below a 256GB 7+ - my guess would be around $949. I think that would be sensible - low enough that it doesn't completely alienate customers, high enough that it will dramatically increase ASP.
Having said that, not sure that this leak is legitimate - even if it isn't Photoshopped, most likely just carrier placeholders for the new models.
According to 9to5 Mac VERY credible case makers are starting to name the new iPhone's:
iPhone 8
iPhone 8 Plus
iPhone Edition
https://9to5mac.com/2017/09/01/iphone-8-edition/
obviously this isn't 100% and won't be until Apple stand on stage and announce it, however it does makes sense and they have done this with the Apple Watch and then Apple Watch Edition.
iPhone 8
iPhone 8 Plus
iPhone Edition
https://9to5mac.com/2017/09/01/iphone-8-edition/
obviously this isn't 100% and won't be until Apple stand on stage and announce it, however it does makes sense and they have done this with the Apple Watch and then Apple Watch Edition.
It would have to be as close to 800 as possible for me, back to the 7S if it's 900+ for sure.
Sadly it will be more than £900 I think.
I am thinking if it only comes in 128GB and 256GB that it will be £949 minimum for 128GB and £1049 or £1099 for 256GB.
Agreed, we could spend days on your avatar alone.
The only thing to discuss is it's effect on tech purchases. I think UK residents are in for a bittersweet Apple keynote, and I say that as someone who actually can afford to drop £1k+ on a phone.
I can afford it, not sure I want to though. I will see what the 7s plus is like before making a decision.
In the US, tax rates vary. Some states (only 5 out of 50) have NO sales tax. I don't know the rates except for the state I live in (Ohio), which is 5.75% + a "local" sales tax. These range from .75% to 2.xx%.
Off-topic, but an example of varying rates, is that some people will buy things like cars in other states to save money.
I know. Heck, in my state it varies by zip code. I'm in Los Angeles County, most cities here are 9.25% but I think there are some that are 11+%.
That said, I believe California also imposes a use tax so I don't think you'll be able to avoid paying full tax by buying a car out of state then registering it with the CA DMV a week later.
That's likely because the £ has rebounded in value against the $ since this time last year when they last set the prices (from about $1.20-.22 up to about $1.29-.32) as it's now stuck around that level for months I would expect a modest readjustment south on prices after the announcement, nothing major, but a welcome trim.