One of the thorniest details of the iPhone X is, without a doubt, its price. In Spain, against all odds, has exceeded €1,000 reaching €1,159. Its starting price in the US is $999. What is this price difference due to?
The first thing to say is that those $999 output are without taxes. In the US, there is no fixed rate tax as we have in Spain, but the taxes depend on each State and even on local administrations.
WITH A FEW SIMPLE CALCULATIONS WE CAN KNOW THE REASON FOR THE PRICE OF THE IPHONE X IN SPAIN
To give an example, in New York, where the rate is approximately 8.50%, the price of the iPhone X would be $1,083. We can see that the final price of the iPhone X in the US is not far from the €1,159 it will cost in Spain.
But this is where we find the one that is the biggest problem. In Spain we have a fixed rate VAT of 21% for technological products. That makes the products quite expensive.
New iPhone X Home Screen
If we break down the price of the iPhone X we find that we pay about €203 in taxes. That makes the price of this iPhone €957, without VAT. And here we have another problem. Apple has made the Euro-Dollar equivalence that it wanted, specifically 1.04.
Currently the Euro is above the Dollar, and one euro is equal to 1.19 dollars. In other words, if we went to the US with €1,000 we would get, in exchange, $1,190. Therefore, doing the equivalence right now, the iPhone X without VAT should cost around €839 and, with VAT, €1015.
As you can see, it would still exceed €1,000 but there is a big difference between €1,015 and €1,159. This movement takes place, as usual, in the countries of the euro zone France, Germany and Italy included. In fact, the iPhone X in the UK is priced at £999 including taxes.
All this, both the 21% tax and the dollar-euro equivalence, make the price of the iPhone X in Spain stand at €1,159. My opinion? That perhaps from Cupertino they should take into account when the euro is above the dollar, just as they do when the dollar is above our currency.
