Things it must be said, have improved on this sun toasted turd of a rock in the Mediterranean. By things, I’m referring to technology and luxury goods prices that have come down since the introduction of the Euro. Obviously every day essentials such as milk and beer have skyrocketed… but for the geek out there, it has been less the case of having to buy their tech toys from abroad than before. Really and truly, when postage and warranty worries are factored in, most tech items are just a 10 euro note cheaper and it doesn’t make the hassle worth it.
Step in the iPhone 5. I was expecting the retail price to be slightly more expensive than the previous iPhone 4S which retailed at €650. I was shocked to see the sticker price to be no less than €723 for the basic model (16gb).
I understand economies of scale etc. But in this instance it very much smacks of the local iPhone resellers taking us for a ride. They know they’ll have a limited quantity and they’ll sell all of them due to the high demand even if it were more expensive. They probably think we’re idiots as they tried to get the price in line with Italy..
Not bad.. having the price of the iPhone the same as our closest EU neighbour right? Well the VAT in Italy is 21% at the moment. In Ireland it’s 23% and in the UK it’s 20%. That means the base selling price for the Maltese iPhone 5 is higher than any of the above mentioned examples. The table below helps..
|Country||Full Retail Price inc VAT||VAT % Rate||Money you’re giving your
good for nothing government
|Price excluding VAT|
|UK||£529 (approx. €660)||20||£105.8||£423.3 (approx. €526.94)|
It might come as a surprise to find the base price in Ireland to be the cheapest (at first glance I’d have thought the UK would’ve been the cheapest) but no surprises when it comes to the most expensive. I don’t see any reason why it should be so expensive here – shipping cannot be as expensive as a 27″ iMac. We’re talking about Boxes half the size of very small shoe boxes!. So if I did have reason to buy an iPhone (I don’t), and if I needed to buy it without a contract, I definitely would take a holiday and buy it from abroad.