May 16, 2022

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Why are iPhones more expensive in the Netherlands than in the US?

Why are iPhones more expensive in the Netherlands than in the US?

You are about to get something new IPhone To buy? Cool! You pay more for it than the other side of the ocean. This is why the iPhone is more expensive in the Netherlands than in the US.

Read after the ad.

The Dutch iPhone is more expensive than the American device

When Apple offers new iPhones, it always shows only US prices. This is always a shame for the Dutch (and Europeans in general) because the amount we have to pay in the end will always be higher.

From IPhone 13 For example, in the United States $ 799, the Dutch pay 909 euros (about $ 1050). That makes a difference! How is this possible?

read more: The delivery time of the iPhone 13 is increasing: who still has the stock?

1. No tax

There are many reasons, but the main reason is related to the tax. In the United States, Apple advertises without adding the iPhone Sales tax (I.e. VAT). The company does this because the tax varies from state to state. Prices including taxes in the Netherlands are quoted.

In US states like Louisiana, Tennessee, Alabama and Arkansas, the tax burden is relatively high (about 10 percent of the purchase price), and in Delaware, Montana, New Hampshire and Oregon you pay no sales tax. These are relatively sparsely populated areas, meaning most Americans have to pay taxes on their iPhone, iPad or Mac.

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But, the tax is low. The highest US VAT rate is about 10 percent, while we pay 21 percent in the Netherlands. A simple calculation says that the maximum price of the iPhone 13 in the US is $ 880: $ 170 price difference with the Netherlands.

IPhone 13 camera comparison

2. Local taxes

So this comparison is not entirely reasonable because the situation in the US and the Netherlands is similar to comparing apples and oranges. There are even higher costs in the Netherlands. For example, consider the private copy tax and removal fee.

3. Apple for thirst

We converted euros into dollars earlier in this article. Accurate exchange rates are constantly fluctuating, so companies are advised to take this into account when creating a buffer. Of course Apple does too.

The company holds the extra bill by converting the dollar price to the euro price. If exchange rates suddenly fluctuate sharply and the dollar appreciates against the euro, Apple will still be profitable enough.

Conclusion

So, why are iPhones more expensive in the Netherlands than in the US? The biggest difference is explained by the lower line in Joe Biden’s country. In addition, the laws and regulations are less comprehensive and Apple is creating a buffer to absorb price fluctuations.

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