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by roywashere 1247 days ago
I always think it is relatively unfair that MacBooks for instance are in Europe more expensive than in the US where in US you will easily make 6 figures as a software developer and in EU the wages for software devs are typically much lower
3 comments

Prices for Mac products are about the same; the difference is taxes (how they are treated and the rates).

1. Taxes in the US are added on top, not inclusive. 2. Taxes in Europe are generally higher than in the US.

Looking at the MacBook Air, in the US it goes for $999.

In the UK, it goes for £999, which is $1030 after 20% VAT is deducted. In France, it goes for €1199, which is currently almost exactly $999 after 20% VAT is deducted.

Ok, I understand prices for products are somewhat the same (although always slightly higher in Europe) but my main point is, because salaries are higher in US, it is easier to buy the same device here than it is there.

And I know salaries in California are higher than in the rest of the US. But also for other types of jobs such as construction work, compensation in US is higher than in the EU

Don't forget that 1 British Pound is $1.20 USD

£999 is really $1236 (and to be fair, the USA has an average sales tax of ~5%)

In Germany they are 1.199,00 €, which is $1301

Apple is always accused of ripping off other countries but most of the time it's the exchange rate.

https://www.macworld.com/article/1358386/apple-ripping-off-r...

Your calculation is wrong. UK prices and German prices are quoted VAT-inclusive, so £999 already includes VAT @ 20% and the German figure includes 19% MwSt. £999 is all you'll pay. In the US you will pay an additional amount at the register based on local sales tax, for example in Cupertino you will pay an additional $91 of sales tax bringing your total up to $1,090. Converted to USD the price difference is almost entirely tax (9.125% vs 20% on a $1k purchase).
Noted and edited
Take off the £167 VAT first, and that gives you £832, or $1030.52. So, depending on what the £/$ value was when the price was set, it's still close.
My understanding is a large driver of this is import and VAT.

In the usa, taxes are added to the price at checkout, but in Europe, it’s before.

Also, European countries have higher import taxes on tech.

The salaries for devs are not that much different. You’re probably thinking about the ones from California, but that’s not a usual compensation for US devs.