If direct conversions were to be made, $599 would translate to roughly £474. For European countries, there’s VAT to factor in, too, which taxes the product on its customs value, duty paid, transportation, and insurance costs. All in all, this amounts to £95, which still makes for £30 more than the MSRP. While some users may believe that Apple is overcharging its consumers in the EU, the company argues that this is done to “insulate” its users from exchange rate fluctuations and provide customers with a fixed, stable price. This, however, isn’t anything new, as prices in the UK and EU have been greater for certain companies when compared to their US counterparts. It’s consistently been a running joke that it would be cheaper to fly to the US and buy an iPhone than locally buying one, but it’s important to note that if done this way, the buyer would have to pay customs on their return, which would offset the price yet again.
