Apple's new MacBook Pros are ridiculously expensive in the UK after Brexit
Stephen Lam/Getty Images
On Thursday, the Californian technology announced an overhaul of its MacBook Pro line, giving the devices a redesign and adding a touch-sensitive screen that sits above the keyboard.But it also bumped up the prices for the laptops very significantly in the UK - far more than it did in its home market, the US - in what seems to be a response to the weakness of the pound following the Brexit vote.
Some kind of price increase is often inevitable when doing a big product overhaul. And that's what you see in the States. The cheapest 13-inch MacBook Pro before the upgrade was $1,299; now, it's $1,499.But in Britain, this price bump is far larger. The cheapest 13-inch MacBook Pro, pre-upgrade? £999. Now? £1,449.
That's an increase of £450 in the UK, compared to $200 in the US. (And remember: The dollar is worth less than the pound!)This is even more pronounced on the more expensive 15-inch MacBook Pros. The cheapest model, pre-upgrade, was $1,999 in the US and £1,599 in the UK. Post-upgrade, it's $2,399 and £2,349.That's a price increase of £750 in the UK, compared to an increase of $400 in the US.
Apple declined to comment on the price hikes, but a spokesperson previously told Business Insider in a statement (emphasis ours):
"Apple suggests product prices internationally on the basis of several factors, including currency exchange rates, local import laws, business practices, taxes, and the cost of doing business. These factors vary from region to region and over time, such that international prices are not always comparable to US suggested retail prices."What's changed in Britain this year? Brexit! In June, Britain voted to leave the European Union - shaking markets and causing the pound to lose 18% of its value, dropping to 31-year lows.
Chip Somodevilla/Getty Images
It's just that the previous relationship between US and UK prices is no longer applicable due to the falling value of the pound, and so Apple has updated it to correspond with the current USD-GBP exchange rate - protecting its margins, and sending British prices rocketing.It's also worth noting that the online price listings aren't necessarily direct comparisons, as the US prices don't include sales tax, while the UK ones do include VAT (Value-Added Tax). But sales tax is generally lower than VAT, and in some states like Oregon it's as low as 0%.
And now Apple's doing it again. The MacBook Pro price hike at least comes alongside a redesign - but the company has also raised UK prices on a number of existing products. The 6-core Mac Pro now costs £3,899, £600 more than its previous price of £3,299, while its US price hasn't budged. The Mac Mini and iMac have also had UK price increases.
Other Mac prices changed today:- Alan Stonebridge (@alstonebridge) October 27, 2016
mini starts £479 (was £399)
Mac Pro £2999 (£2499)
iMac 4K £1449 (£1199)
iMac 5K from £1749 (£1449)
- Compound Interest Waiver Scheme applies to everyone but provides limited relief — Here’s everything you need to know
- Best budget truly wireless earbuds in India
- India is the most attractive emerging market for clean energy investment, says Prime Minister Modi
- Tata Motors may report loss for yet another quarter led by weak JLR sales, commercial vehicles’ pain
- Supreme Court jumps in for Amazon and Flipkart after Karnataka High Court remains mum on investigation against their anti-competitive practices for over 200 days