On: iPhone 14: Cheapest Country to Buy in 37 Countries

[larsnystrom]

Swedish VAT is 25%, but the price is ~35% higher than the US. I think this is because the Swedish krona has lost value against the dollar over the last year, but I don’t think Apple has actually raised prices in Sweden (for the previous iPhone lineup).

[wodenokoto → larsnystrom]

It’s not just VAT. There are also import duties, taxes on salaries and land (there’s at least a warehouse, maybe also a physical store as well as a few pair of hands in play along the value chain of selling an iPhone in Sweden)

Maybe salaries in Sweden are higher than us as well.

[Yizahi → wodenokoto]

Apple tech sold in USA is also manufactured overseas, and should be subject to shipping, imports, salaries and so on.

[wodenokoto → Yizahi]

Yes and the difference of those adds to the difference of the end price.

[larsnystrom → wodenokoto]

I don’t think those things matter much on the whole, and I also think Swedish (tech) salaries are actually lower than what they’re paying in the US.

But the Swedish krona has lost ~22% against the USD in a year. So a 10% margin seems pretty reasonable given they haven’t raised prices during that year and nobody knows how the currency will fluctuate the upcoming year.