The Price of an iPhone in Europe: $562 and Rising
In the U.S., the cost of an iPhone has fallen sharply since it was introduced nearly three months ago, from $599 to $399, thanks to Apple’s (AAPL) famous September price cut.In Europe, the situation is reversed. The devices don’t start shipping for more than a month, but iPhones there are already more expensive than they were just a few days ago — thanks to the falling value of the dollar.
Steve Jobs had priced the phones high to start with, building in the 17.5% value-added tax (VAT), the cost of doing business overseas and a fudge factor to cover currency fluctuations. So far, those fluctuations have worked against the dollar, as the chart below suggests.
Bottom line: an iPhone in Europe today is 40% more expensive than the same phone in the U.S.
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