Apple blames VAT and extra costs for higher UK iPhone prices


“From the beginning there was a difference, and the more the price goes up the more you see the difference,” said Carolina Milanesi, principal analyst at Creative Strategies. She said that as well as VAT, higher transport costs as well as the uncertainty of Brexit may have had an impact on prices.

Last year’s iPhone 7 cost $649 in the US and £599 in the UK – close, but not equal in pound and dollar terms, as the new phones are. 

Back then the pound was at a roughly similar level against the dollar as it is today, so it is unclear exactly why the new iPhone has become relatively more expensive in sterling terms this year. Apple probably sets its prices several weeks or months ago, when the pound was lower against the dollar than it is now.