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UK iPhone

10:30 AM -- First take on Apple Inc. (Nasdaq: AAPL)'s iPhone launch in the U.K. with mmO2 plc (NYSE/London: OOM): Wow! Its pretty expensive at £269 (US$539).

I know that things are generally more expensive in the U.K. and that the dollar is weak against the pound, but still... not cheap. (See iPhone Invades UK.)

Wonder when the first price drop is due.

— Dan Jones, Site Editor, Unstrung

lrmobile_millomar 12/5/2012 | 3:02:27 PM
re: UK iPhone In the US retail prices are quoted ex-sales tax. How much you pay depends on the state you are in.

In the UK retail prices are quoted including VAT at a rate of 17.5%.

If you reverse out the VAT in -ú269 you get about -ú229. At today's rates that's about $457. Assuming retail sales tax in the US at 8% or so you get $431.

So the retail prices are really broadly comparable.

But the real question is the total cost of ownership if you use it as a phone and subscribe to O2 or AT&T and then compare it with a similar functionality phone on a similar plan. In the US the cheapest plan is $60 per month for two years. I have no idea about the UK. I have a feeling you won't be complaining about the -ú15 price difference.

lrmobile_millomar 12/5/2012 | 3:02:26 PM
re: UK iPhone Now I know that it -ú35 a month for 18 months there is a better picture. US minimum commitment = $1840. UK minimum commitment = -ú900 or $1800 at today's rates. So you get it in the US for 6 more months but early adopters like to change their phones more frequently so a shorter commitment is probably better in many ways. I would say they stack up pretty closely.
joset01 12/5/2012 | 3:02:25 PM
re: UK iPhone Remember that phones in the UK are often sold without a contract, the faster HSDPA-capable Samsung i600 , for instance, is available for -ú218 or so without a contract. So that's two things different about the iPhone.

-- DJ
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