Why are computers more expensive in Europe?

Toon Bouten, vice president in charge of European consumer marketing at Compaq, explained the price differential this way: “In Europe, PCs are more expensive because of VAT, higher labor costs and higher property rental costs for computer dealers.” Compounding the problem, he reckoned, is that, on average, Europeans …

Why is American technology cheaper?

Due to the high amount of out-of-country sourcing for “cheap” manufacturing, electronics can be found for almost 40 percent cheaper than anywhere else.

Why are computers so expensive in the UK?

Probably for the same reason apps are more expensive there. UK advertised prices include 20\% VAT, while USA advertised prices do not include any tax. VAT/Sales tax is the main one. The UK charges 20\% VAT on such products so this is instantly going to increase prices.

Why are things more expensive in UK than US?

The biggest factors in determining cost of living are wage rates and housing costs. The UK cost of living is relatively high, but this also reflects the relatively high wages in the UK. Tax rates are important for goods like alcohol, petrol and cigarettes with UK tax rates higher than European / US rates.

Why is UK technology expensive?

Tax is certainly a major factor. In the US, sales tax varies from state to state and is added to the headline price at the checkout. In the UK, the 20\% VAT charge is included in the price you see.

Are iPhones cheaper in Mexico?

The iPhone X starts at $999 for the 64 GB version and the 256 GB model costs $1,149 in the US….iPhone X price in US dollars.

Are electronics cheaper in US than UK?

The UK does levy charges on certain items, but consumer electronics are usually exempt. David Wilson, head of PR in the UK, says, “It’s cheaper to do business in the US,” and adds that operating in lots of small European countries is more logistically challenging than in the US.

What is the difference between the prices in Europe and USA?

Prices in the US are usually listed without VAT, while in Europe they are with. The highest sales tax in the USA is about 10\%, and many locations have 0\%; the lowest VAT in the EU is 17\% (Luxembourg) but most are over 20\%. Besides that the prices are mostly equal as far as I’m aware.

Are internet prices in the US and France really that different?

A Center for Public Integrity analysis of internet prices in five US cities and five comparable French cities found that prices in the US were as much as 3.5 times higher than those in France for similar service.

How much does it cost to get Internet service in Europe?

For example, in Nice, French provider OVh Telecom offers the most expensive service, at $35.28 per month for 19 megabits per second, or $1.86 per megabit. Reducing the speeds by the 74 percent of what European telecoms truly deliver increases the cost per megabit to $2.50.

Is there more price discrimination in Europe than in the US?

However, even they are playing the game, pricing to national markets rather than offering uniform EU-wide competitive prices. There are larger geographic wealth differences within Europe than within the US. The larger the difference, the more value to price discrimination. VAT? I don’t think that describes all of it, however.