eXtensions - Wednesday 25 July 2018


Cassandra - Speculation on Pricing with Tariffs Applied to the iPhone: Cheaper in the UK and Thailand

By Graham K. Rogers


Here's a thought: if planned tariffs are applied to the iPhone, despite what was promised (Malcolm Owen, AppleInsider), that will make the iPhone far more expensive in the USA, along with other goods, but it will undoubtedly make it cheaper for those in countries outside the United States to buy the iPhone.

iPhone X Taxes are always applied locally - by a country or a city, for example - so the base price is usually the same, give or take shipping fees. US prices always appear less as Apple never includes taxes, which vary from state to state. There are also some city taxes which may add more to the price the consumer pays. The iPhone bought in the UK is the same price as the device bought here in Thailand, although the customer ends up paying more in Britain because of the swingeing 20% VAT.

The iPhone X starts at $999 in the USA (currently), but is £999 in the UK where it includes VAT of approximately £167.00 ($220). In Dollar terms, the iPhone X in the UK is $1314 (44,700 baht) with VAT. The iPhone X is 40,500 in Thailand ($1207) with VAT of 7%, which is 2,650 baht ($79).

If there were a tariff addition of $500, that would make the starting price of the iPhone in the USA $1499 (£1138 or 49,947 baht) before any state or local taxes are added. For once the iPhone would be cheaper in the UK and considerably less in Thailand.

Graham K. Rogers teaches at the Faculty of Engineering, Mahidol University in Thailand. He wrote in the Bangkok Post, Database supplement on IT subjects. For the last seven years of Database he wrote a column on Apple and Macs. After 3 years writing a column in the Life supplement, he is now no longer associated with the Bangkok Post. He can be followed on Twitter (@extensions_th)



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