BJMC

London England

Gentleman of Leisure

I always believed Europeans are better educated

...but now I have my doubts.

Goods are sold in the USA on prices marked before sales taxes.

If I purchased a Mac Mini in Washinton DC, on check out I would be charged (in pounds for convenience) £268 plus 7% Sales Tax which equals £286.76.

If I purchase from an UK store, I will be charged £339 and if I deduct VAT at 17.5% this equates to £288.51.

So the price paid in the UK is a little higher than the pre-tax comparative price in the USA. This UK price includes a complex set of currency hedges including $:£, and $:various component and manufacturing currencies. Apple might well cover this hedge on the markets through a bank or might cover the risk itself.

I believe Apple now does a great job in trying to keep prices similar around the world. When Apple fixed its rates (at a cost) for 2005, we immediately saw prices on most products sold in the UK reduced accordingly.