Apple add a premium to the price of their Mac computers in the UK. The price difference varies depending on range and model. It is important to note that prices in the US Apple Store are shown without sales tax added. Prices in the UK store already include sales tax (VAT).

The premium may be calculated by removing VAT from the UK prices and converting the US prices from USD ($) to GBP (£) at the current exchange rate. Following are the premiums on the base models of all available Macs as calculated on the 16th of January 2008. At the time of writing, GBP/USD is 0.50947 and VAT is 17.5%.

Name US $ UK retail £ US £ UK no VAT £ UK - US £ Premium %
Mac Mini 1.83Ghz 599 399 305 340 34 11.3
Mac Mini 2.0Ghz 799 499 407 425 18 4.3
iMac 20" 2.0Ghz 1,199 799 611 680 69 11.3
iMac 20" 2.4Ghz 1,499 949 764 808 44 5.8
iMac 24" 2.4Ghz 1,799 1,149 917 978 61 6.7
iMac 24" 2.8Ghz 2,299 1,459 1,171 1,242 70 6.0
Macbook 13" White 1,099 699 560 595 35 6.2
Macbook 13" White 2.2Ghz 1,299 829 662 706 44 6.6
Macbook 13" Black 1,499 949 764 808 44 5.8
Macbook Air 1.6Ghz 1,799 1,199 917 1,020 104 11.3
Macbook Air 1.8Ghz 3,098 2,028 1,578 1,726 148 9.4
Macbook Pro 15" 1,999 1,299 1,018 1,106 87 8.6
Macbook Pro 15" 2.4Ghz 2,499 1,599 1,273 1,361 88 6.9
Macbook Pro 17" 2,799 1,799 1,426 1,531 105 7.4
Mac Pro 2,799 1,749 1,426 1,489 63 4.4

Steve Jobs, CEO of Apple Inc., recently listed the reasons behind the difference between the US and UK prices on the Apple Store as:

  • UK prices include VAT
  • It costs more to do business in the UK
  • A little bit more

The last point is not a reason, of course. I would guess that the final few percent are due to the following:

  • The UK consumer is willing to pay the extra - therefore Apple can get away with charging it, without adversely affecting sales.
  • Figures are rounded up and then one pound is subtracted.

Please note that this analysis is not intended as negative criticism of the way Apple price their products. If I worked for Apple and was responsible for pricing products for the UK, I would use almost exactly the same system.