If you are in the UK, you may be aware of the increased VAT rates that consumers now have to pay for their goods. Electronic items like the iPhone and iPad has attract VAT charges of 20% – up from 17.5% that was levied last year. One may have expected Apple to absorb the hike to maintain their original price points. However, Apple has now announced that the prices of their devices will now be priced higher in order to keep up with the new VAT charges.
Consequently, a 16GB iPhone 4 will now cost £510 instead of the earlier £499. Also, the entry level iPad – the 16GB Wi-Fi only model – will now cost £439 instead £429. Prices of Apple’s iPod devices too will see an increase. The new starting prices for iPod Touch, iPod Classic, iPod nano and iPod Shuffle will now be £193, £197, £131 and £40 respectively.
