Reply to post: Re: Hmmm

UK PC prices have risen 30% in a year since the EU referendum

Anonymous Coward
Anonymous Coward

Re: Hmmm

As noted by others, sales tax/VAT makes up a lot of the difference between the US and UK prices. The rest is usually put down to "regionalization", which is generally assumed to be a piss take as we just get the american english version of the product rather than a UK-specific one. However, the regionalization costs are more attributable to covering the warranty requirements in each territory - the UK (and EU) generally have much stronger consumer rights law than the US, so the warranty liability is consequently much higher. On this basis, a 1:1 £:$ exchange rate for tech products isn't actually all that bad. There are still a few companies who routinely do take the piss by having even more unfavourable $:£ exchange rates for their products/services, but examples of this are fairly rare.

I generally take the line that comparing US and UK prices is pretty pointless, as it's too much a case of apples and oranges. Comparing EU and UK prices is perfectly sensible though, as both taxation rates and consumer protection law tend to be pretty similar between the two.

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