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by simonh 2620 days 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-...

2 comments

> 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.

European countries often have a minimum 5 year warranty on electronics sold to consumers, while Apple's extended warranty costs more than 10% for just two years, so that's got to be an important factor too. AppleCare is probably better than what's required by law in Europe though.
Where does law say to give 5 years warranty? I'm only aware of 2 years.
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%.