[indigomm]

US Price: $499 UK Price: £599

I get that technology companies don't just directly convert USD at the appropriate exchange rate, but this is ridiculous. Especially as the conversion rate they used on the Pixel Fold is 1 USD = 1 GBP.

[gamblor956]

The UK price is VAT inclusive. (Advertised prices in the UK must generally include tax.)

The US price is pre-tax (since there are several thousand sales tax rates that could apply, based on customer location).

[wongarsu]

UK value-added tax is 20%. $499 * 1,20 = $598.8, which is about £478. Selling it for £499 would have more than covered the tax difference at current exchange rate, so where do the other £100 come from?

[gamblor956]

As was pointed out earlier in other comments, Google generally uses a 1:1 convention for USD->GBP for pricing. (This 1:1 generally accounts for minor f/x fluctuations and for customs duties for importing goods into the U.K.)

GBP 500 x 120% = GBP 600 (rounded)

[76SlashDolphin]

Then how is the Pixel 7a only £450 when it's $500 in the US?

[advisedwang]

Some reasons, not all of which are applicable to this exact situation:

* Differences in tariffs and taxes.

* Differences in what deal they can make with local distributors.

* Cover cost of different consumer protections/warranty requirements etc.

* They think the market will sell enough units at the higher price to make it more profitable than a lower price.

[wongarsu]

679€ in Germany, which is about the same as the UK price. Or about $740. Even if you remove the taxes, that's still $622.

[donalhunt]

At least it's available in the UK. Ireland (home to Google's EMEA HQ) gets... The Pixel 7a.

[nr2x]

And Google duly thanks the Irish for not enforcing days protection laws!

[byhemechi]

it's actually insane, obviously this isn't google but it is actually cheaper for me to fly from prague to the US, buy a new macbook and fly back than it is for me to buy one locally. It makes absolutely no sense

[76SlashDolphin]

Is it though? When I went to the US recently, an M1 MacBook Air from the physical Apple Store + taxes was about the same as I paid for it in the UK. I was considering getting an iPhone while I was there but the shorter warranty and same price out me off.

[beojan]

Back when it was $2 = £1 prices seemed to be converted at a 1 - 1 rate (and VAT was 17.5% then). This seems to be a long standing problem.

[indigomm]

The 1:1 at least had some rationale given UK VAT and greater expenses. But this is 50% more expensive ($499 is £399 at current rates). And why use different rates for the Fold than the Tablet?

[beojan]

1:1 then meant a 100% markup compared to the US price. That isn't accounted for by 17.5% VAT. I can't imagine expenses were really twice as high.

[medo-bear]

one reason might be is that in the US taxes usually arent included in the price advertised

[nr2x]

“Brexit means Brexit”