What's up with the prices in Europe?

[HighSierraCatalina]

Hello,
I just wanted to ask why are MacBooks so much more expensive in Europe? Also, the new MacBook Pro costs as much as the new MacBook Air i5.
What's up with that?

Apple MacBook Pro 13" Touch Bar, Intel Core i5 1,4 GHz,8 gen, RAM 8GB, 256GB SSD costs 1500€ over here. Really? The same with the new MacBook Air with i5 processor.
It seems to be a lot cheaper in The US. Why is that? With PCs there's no such issue. Also, the MacBook Pro 2019 costs 1200€, so those arent the same price as YouTubers claim.

Can I somehow order it from The US? I'm a bit scared of eBay, because I've already gotten scammed. It's just unfair. With PCs there's no such massive difference

 

[dbrose]

Have you included state taxes that must be added?

The same device here is on sale for £1299.
In the US it’s $1299+ sales tax so roughly about $1402 based on 8% admittedly some states are 0%.
However converting gbp > usd comes out about $1600
Rest of the world is always cheaper than on own soil due to changing exchange rates etc

By the time you have ordered it from the US with delivery and customs import duties at your own country’s rates it won’t be much cheaper. The only real way to get it cheaper is someone going to the US and buying it and bringing it over out of the box.

 

[HighSierraCatalina]

Have you included state taxes that must be added?

The same device here is on sale for £1299.
In the US it’s $1299+ sales tax so roughly about $1402 based on 8% admittedly some states are 0%.
However converting gbp > usd comes out about $1600
Rest of the world is always cheaper than on own soil due to changing exchange rates etc

By the time you have ordered it from the US with delivery and customs import duties at your own country’s rates it won’t be much cheaper. The only real way to get it cheaper is someone going to the US and buying it and bringing it over out of the box.

But when I asked from one American she said that taxes are very low over there and the MBP 2020 would cost her $1379.

Yeah, I guess I would have to buy it here. But still when I look at the Apple reseller stores then MPB and MBA are the same price, which does not make sense.
I think I have to wait some more?

 

[Juicy Box]

But when I asked from one American she said that taxes are very low over there and the MBP 2020 would cost her $1379.

There could be a lot of reasons for the difference in pricing between the US and outside the US.

Some are obvious like tax differences. In the US, taxes are not built into the price and taxes vary from state to state. The sales tax range from 0% to 9.47%, depending not the state.

Another is being Consumer Protection Laws, many people incorrectly think that any added cost due to CPLs get taken out of the companies' bottom line, but these laws just get passed down to the consumers with each device costing a little more.

Many countries have better (from the consumer's perspective) CPLs than the US, this can sometimes be seen by the varying prices.

In addition to CPLs, there could be other regulation fees or tariffs that Apple has to pay to sell things in a particular area that ends up affecting the price of the devices.

Exchange rates are a big factor as they are not static.

Apple doesn't change the price of their products each time the exchange rate changes, and they do not want to have too much of a loss due to the exchange rate, so Apple and most international businesses plan ahead and try to price products to reflect the projected changes.

Sometimes places might end up being cheaper than the US, some might end up being more expensive.

But still when I look at the Apple reseller stores then MPB and MBA are the same price, which does not make sense.

Apple MacBook Pro 13" Touch Bar, Intel Core i5 1,4 GHz,8 gen, RAM 8GB, 256GB SSD costs 1500€ over here. Really? The same with the new MacBook Air with i5 processor.

There two devices are the same exact price in the US, $1,299.

 

[Juicy Box]

Another thought about the exchange rates, according to a web search, the VAT in the EU ranges from 17% to 27% with an average of 21.3%.

Apple MacBook Pro 13" Touch Bar, Intel Core i5 1,4 GHz,8 gen, RAM 8GB, 256GB SSD costs 1500€ over here. Really?

1.17*1299 = $1,519.83 = 1,385.38 Euro
1.21*1299 = $1,571.79 = 1,432.74 Euro
1.27*1299 = $1,649.73 = 1,503.97 Euro

$1,299 (or 1,184.08 Euro) is the cheapest price to buy the MBP in the US, as long as you live in a state with no sales tax.

So, if you are in an area with a higher VAT, you are actually paying less than here in the US.

If you are on the lower end of the VAT, just keep in mind that those prices do not include those other things mentioned such as projected exchange rate changes and Consumer Protection Laws.

 

[HighSierraCatalina]

Another thought about the exchange rates, according to a web search, the VAT in the EU ranges from 17% to 27% with an average of 21.3%.



1.17*1299 = $1,519.83 = 1,385.38 Euro
1.21*1299 = $1,571.79 = 1,432.74 Euro
1.27*1299 = $1,649.73 = 1,503.97 Euro

$1,299 (or 1,184.08 Euro) is the cheapest price to buy the MBP in the US, as long as you live in a state with no sales tax.

So, if you are in an area with a higher VAT, you are actually paying less than here in the US.

If you are on the lower end of the VAT, just keep in mind that those prices do not include those other things mentioned such as projected exchange rate changes and Consumer Protection Laws.

Thank you. It all makes sense now!

 

[SkiHound2]

VAT rates in Europe are over 15%. I think about 19% in Germany. In the US, states vary with respect to sales tax rates. In the US, a $1000 item would be listed as $1000. If the sales tax were 7%, fairly typical, the actual price would be $1070. In Europe, the VAT is simply part of the price. I don't feel like the VAT fully accounts for price differences between Europe and the US, but it explains a significant chunk of the difference.

 

[SkiHound2]

I decided to poke around a bit and 15% is a minimum VAT on most products. VAT is higher, over 20%, in most European countries. And my understanding is that they apply at different points in the supply chain. So, VAT probably accounts for the vast majority of the price differences.