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0 pointsAlterlife7y ago0 comments

> a 64 GB iPhone X is currently selling for around 1100 dollars.

That isn't right. The iPhone X costs (just under) 1,00,000 INR retail in India, which is over 1400 usd.

This includes taxes.

For reference: https://www.flipkart.com/mobiles/apple~brand/pr?sid=tyy,4io&

0 comments

That’s what Apple usually does: they keep roughly the same digits, and change the currency. And it usually makes their products significantly more expensive outside of the US.

I live in Sweden, and the pricing will go like this:

- The US: $999

- The EU: €999

- Sweden: 9900 SEK

Depending on currency rates, it can become up to 30% more expensive.

My favorite discovery was around the time of the trashcan MacPro. It was cheaper to fly to New York, buy the Mac, and fly back than to buy one in Sweden. And you would still have money left over.

Kurtz797y ago

"That’s what Apple usually does: they keep roughly the same digits, and change the currency."

It makes no sense comparing US and EU prices directly, as the former are always shown without VAT (which varies state from state), and in the latter the VAT is included (which is specific to each country).

Also, price will fluctuate even across EU countries, on account of different VAT taxes in the individual member states, so that Apple "keeps the same digits" it is simply not true, as a rule:

iPhone X 64GB USA(no VAT): 999$ https://www.apple.com/us_kiosk_5000012/shop/buy-iphone/iphon...

iPhone X 64GB Italy (VAT 22%): 1189€ https://www.apple.com/it/shop/buy-iphone/iphone-xs

iPhone X 64GB Spain (VAT 21%): 1159€ https://www.apple.com/es/shop/buy-iphone/iphone-xs

The only way to compare them is to remove VAT, for example in the case of Italy:

1189/(1+0.22)= 974€ -->> 1100$ (current exchange rate).

So, there is about 10% difference, which could be (partly) accounted for due to the different warranty requirements in EU.

EDIT: Fixed math

simonh7y ago

Nice analysis. If you factor in local sales taxes in the US, that 10% difference shrinks or even disappears pretty fast.

I'm afraid 'Apple charges more abroad' is largely a fallacy. Where there is a difference, it's almost always pretty clearly due to local taxes or costs of doing business. This used to really piss off Steve J[1] because he saw it as terribly unfair.

[1] https://www.imore.com/steve-jobs-international-ipad-pricing-...

zapita7y ago

> If you factor in local sales taxes in the US, that 10% difference shrinks or even disappears pretty fast.

If you factor in sales tax on the US side, you also have to factor in VAT on the EU side, since they are equivalent.

So that 10% difference is correct.

1 more reply

Amezarak7y ago

State sales tax ranges from 0-7%, with a few localities adding a few percentage points in top of it.

VAT ranges from 17% to 27%.

xxs7y ago

Sweden is still in the EU, it has higher VAT than (say) Germany as well. Also iphone x is ~865 on amazon.de[0]. You can order with within the EU (see the 1st sense again), the delivery would be around ~10€, but the price is to be a bit higher due to VAT diff. Side benefit of amazon is that you will never need to deal with apple repair services as you can send the goods back to amazon.

US price has no sale tax (which varies per state and county)

To sum up: if you find the goods at any retailer in the EU, buy them online and pay for the delivery - for light products (electronics), the shipment costs are low when not 'free'.

[0]:https://www.amazon.de/Apple-iPhone-X-64GB-Space-Grau/dp/B075...

xorcist7y ago

Note that within the EU, as soon as you sell over a certain limit to a member country you have to charge VAT in the destination country. So large retailers will list prices with their respective VAT included and then re-calculate prices when you get to the payment stage (when they know which country you order from).

xxs7y ago

Sure, hence that part in my reply and mentioning higher VAT of Sweden. The amounts needed to apply per country VAT are rather low as well (like 35k, iirc).

>>but the price is to be a bit higher due to VAT diff.

Sweden has 25% which is pretty high, compared to the 19% Germany.

jrockway7y ago

Canada: $1379. (On the $999-in-the-US iPhone XS.)

They do not always use the round numbers.

ido7y ago

Seeing as most Canadians live near the US border maybe they go closer to American prices there as there's a lower barrier for Canadians to cut the fat margins by crossing the border and buying in the US?

gruez7y ago

Considering that 1000 USD is 1340 CAD, you're only saving around 40 CAD for your troubles. That doesn't seem worth it if you value your time.

1 more reply

mrunkel7y ago

Including VAT and import duties? I find that very hard to believe.

mstade7y ago

Open the box and plug it in while in the states. Now it’s just property you brought along, not imported goods, so no duties to pay. I ain’t no lawyer though, and this is just advice I’ve been given in the past, so mileage may vary etc. (I wouldn’t be surprised if it’s entirely wrong, someone please correct me!)

ForHackernews7y ago

I'm pretty sure that's legally fraud, but yes, there's a good chance you'd get away with it.

2 more replies

j / k navigate · click thread line to collapse

0 comments

dmitriid7y ago

That’s what Apple usually does: they keep roughly the same digits, and change the currency. And it usually makes their products significantly more expensive outside of the US.

I live in Sweden, and the pricing will go like this:

- The US: $999

- The EU: €999

- Sweden: 9900 SEK

Depending on currency rates, it can become up to 30% more expensive.

My favorite discovery was around the time of the trashcan MacPro. It was cheaper to fly to New York, buy the Mac, and fly back than to buy one in Sweden. And you would still have money left over.

Kurtz797y ago

"That’s what Apple usually does: they keep roughly the same digits, and change the currency."

Also, price will fluctuate even across EU countries, on account of different VAT taxes in the individual member states, so that Apple "keeps the same digits" it is simply not true, as a rule:

iPhone X 64GB USA(no VAT): 999$ https://www.apple.com/us_kiosk_5000012/shop/buy-iphone/iphon...

iPhone X 64GB Italy (VAT 22%): 1189€ https://www.apple.com/it/shop/buy-iphone/iphone-xs

iPhone X 64GB Spain (VAT 21%): 1159€ https://www.apple.com/es/shop/buy-iphone/iphone-xs

The only way to compare them is to remove VAT, for example in the case of Italy:

1189/(1+0.22)= 974€ -->> 1100$ (current exchange rate).

So, there is about 10% difference, which could be (partly) accounted for due to the different warranty requirements in EU.

EDIT: Fixed math

simonh7y ago

Nice analysis. If you factor in local sales taxes in the US, that 10% difference shrinks or even disappears pretty fast.

[1] https://www.imore.com/steve-jobs-international-ipad-pricing-...

zapita7y ago

> If you factor in local sales taxes in the US, that 10% difference shrinks or even disappears pretty fast.

If you factor in sales tax on the US side, you also have to factor in VAT on the EU side, since they are equivalent.

So that 10% difference is correct.

1 more reply

Amezarak7y ago

State sales tax ranges from 0-7%, with a few localities adding a few percentage points in top of it.

VAT ranges from 17% to 27%.

xxs7y ago

US price has no sale tax (which varies per state and county)

To sum up: if you find the goods at any retailer in the EU, buy them online and pay for the delivery - for light products (electronics), the shipment costs are low when not 'free'.

[0]:https://www.amazon.de/Apple-iPhone-X-64GB-Space-Grau/dp/B075...

xorcist7y ago

xxs7y ago

Sure, hence that part in my reply and mentioning higher VAT of Sweden. The amounts needed to apply per country VAT are rather low as well (like 35k, iirc).

>>but the price is to be a bit higher due to VAT diff.

Sweden has 25% which is pretty high, compared to the 19% Germany.

jrockway7y ago

Canada: $1379. (On the $999-in-the-US iPhone XS.)

They do not always use the round numbers.

ido7y ago

gruez7y ago

Considering that 1000 USD is 1340 CAD, you're only saving around 40 CAD for your troubles. That doesn't seem worth it if you value your time.

1 more reply

mrunkel7y ago

Including VAT and import duties? I find that very hard to believe.

mstade7y ago

ForHackernews7y ago

I'm pretty sure that's legally fraud, but yes, there's a good chance you'd get away with it.

2 more replies

j / k navigate · click thread line to collapse