American vs UK Apple Store Prices

I was a bit annoyed at how different the prices were in the UK Apple store compared to the prices of the US store (obviously, factoring in the exchange rate). I’ve drawn up a quick table below just to put the prices side by side.

As you may have guessed, MB = MacBook, MBA= MacBook Air and MBP = MacBook Pro. The models listed increase in specifications with MB(3) being the ‘old style’ MacBook.

I have taken the price from the US store for each product, converted to GBP using the current (15th October 22.30, 2008) exchange rate. Then listed the price given in the UK store and in the final column, calculated the difference. This final column is the one I am concerned about. 

%Δ of each product is as listed (roughly);

• MB (1) = 25%
• MB (2) = 23%
• MB (3) = 23%
• MBA (1) = 24%
• MBA (2) = 23%
• MBP (1) = 20%
• MBP (2) = 20%

So, as you can see, the average Δ% is around 22.5%. The question now is, where did Apple get this figure from. Why did they decide that the UK’s prices should be, on average, 22.5% higher than those in the US? Well, being the economist I am, I’m embarrased to admit that I haven’t a clue.

Obviously the Dollar is very weak at the moment (nigh on 2$ to £1) but this doesn’t really factor for the 22.5% difference in pricing. Again, it has always been the case that Britain’s are generally charged more for things because of our ‘once healthy’ economy. It’s like me (a Northerner) going to London and finding things much more expensive than I’m used to where I live, to use a better example look at the difference in property prices between northern cities and the capital – now, take this example and expand on it globally.

 

Like I said, I’m only suggesting some ideas but none can fully explain the extent to which Apple is charging it’s UK customers more. I encourage you to leave a comment should you know the answer to this, or even if you just have our own theories, because I’d really love to know.

Anyway. Rant Over. Signing Off