Customers feel Brexit Bite as Apple Pushes Up Prices in UK by 20 Percent

As technology giant Apple tries to battle a weaker pound, the company has quietly pushed up the price of existing products in the United Kingdom.

Apple has been cost more on any products sold in Britain due to the fact that sterling has slipped almost 20 percent in value against the dollar ever since the Brexit vote on June 23.

And now, even as all eyes were on their new product launch event in Cupertino, California, Apple has moved to address the additional costs it faced due to the weaker pound, raising prices overnight Thursday.

Up from £2,499 earlier in the week, the computer and phone maker began charging £2,999 pounds ($3,650) for its “Mac Pro” desktop machine. And hence for a computer that hasn’t been updated for more than two years, that means a mark-up of 20 percent.

Now retailing at £479 pounds compared to the £399 British people could have paid on Thursday,  the “Mac Mini” also witnessed a 20 percent hike.

Additionally, the iMac 4K and 5K are both now £300 more expensive to buy.

By arguing that currency rates, import laws, taxes and the cost of doing business all feed in to the final sales ticket, Apple has previously answered criticism of its overseas pricing.

While in the U.S. an equivalent sales tax is at most 13 percent, in the U.K., customers pay an additional 20 percent sales tax.

With some products set to go up by as much as 22 percent Microsoft announced it too will raise prices in the U.K., earlier this week.

Apple has significantly bumped up the starting price for its all new MacBook Pro range, in addition to raising the prices of older computers. The previous generation of the 13-inch MacBook Pro laptop started at £999.

At almost double the price, the UK customers would have to pay starting from £1,749 for the new version of that laptop, complete with the Touch Bar and TouchID fingerprint sensor.

While the costs of Apple products have gained price due to Brexit, New York is set to be the winner from Brexit unless they avoid mutually destructive negotiations over the future of the U.K.’s financial sector, warned several of the City of London’s most prominent voices to the European Union (EU) and the U.K

The EU also stands to lose significantly, rather than be well-positioned to benefit from the potential loss of U.K.-based firms’ so-called passporting rights as the message served as a thinly veiled warning to EU leaders that unless they co-operate with the U.K. in working towards the least damaging outcome for Brexit.

As Brexit negotiations proceed, instead as enemies on opposite sides of the table, the sharpening of rhetoric can be seen as an attempt to position the EU and the U.K. on the same team.

“It is already apparent that the biggest beneficiary of any job losses in the U.K. will be New York, and some employment will simply stop as the volume of business can no longer be supported by the higher costs,” said City of London Corporation Chairman Mark Boleat.

(Adapted from CNBC)

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Categories: Economy & Finance

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