Why is iPhone 4 cheaper in the US than the UK?

[Artmuzz]

I was on the Apple UK site and the iPhone 4 starts at £499 yet on the Apple US site the price starts at only $199.

Please advise


Art

 

[OllyW]

It's not.

On an similar 24 month contract it's cheaper in the UK.

The £499 is for an unlocked iPhone without a contract.

 

[spinnerlys]

No contract.

Reduced pricing is also available.

iPhone may also be available at a reduced initial price with a contract directly from your wireless carrier.
from http://store.apple.com/uk/browse/home/shop_iphone/family/iphone?mco=OTY2ODA2OQ

Can you order in the UK even though you're not living there?
Because the price is too good to be true, in Germany they want 1150€ (950 GBP, 1412 USD) for an unlocked phone.

It seems not, but can you buy the unlocked version in Apple Stores in London or even Paris?

 

[dainja]

Prices in the UK include 17.5% VAT (sales tax)

 

[Artmuzz]

It's not.

On an similar 24 month contract it's cheaper in the UK.

The £499 is for an unlocked iPhone without a contract.

So is the $199 iPhone on the US Apple Site an unlocked iPhone without a contract? Or is the US site different as it sells only the iPhones locked with a contract unlike in the UK?


Art

 

[robbieduncan]

So is the $199 iPhone on the US Apple Site an unlocked iPhone without a contract? Or is the US site different as it sells only the iPhones locked with a contract unlike in the UK?


Art

All iPhone sold in the US are locked to AT&T. The price listed is with a new 24 month contract.

 

[j2004p]

Put simply US prices dont have to show the price including Sales Tax / VAT the UK does.

It's why the iPad appears to be SO expensive in the UK when actually the prices aren't too far off when you take the tax situation into account.

 

[Blakely028]

The price of the iPhone 4 in the UK is higher because it is SIM-Free and is not locked to any network and can be used Pay & Go.

Whereas in the US it is $199 because you pay that price for the phone and have to sign up to a 24-month contract with AT&T.

 

[miles01110]

Isn't the higher cost of doing business in the UK factored as well?