Business Insider

Why Is Apple Jacking Up the Prices of Its Devices in the U.K.?

Apple CEO Tim Cook announces the new Apple iPhone 7 during a launch event on September 7, 2016 in San Francisco, California.

Photo by Stephen Lam/Getty Images

This post originally appeared on Business Insider.

Apple has used the cover of the iPhone 7 launch to bump up the prices of many of its products in Britain—apparently in response to a weak pound following Britain’s vote to leave the EU.

The Cupertino technology giant has increased the U.K. prices of certain models of iPhone, iPad Pro, and iPad Air—while retaining the older, smaller pricetag in the U.S.

On Wednesday, Apple announced the iPhone 7, as well as the second Apple Watch, in its biggest launch day of the year. At the same time, it has increased the minimum internal storage in many of its devices, up from 16GB to 32GB.

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On Apple’s American website, this hasn’t affected prices. But U.K. customers could be in for a shock if they were holding off on purchasing goods in the hope of a reduction.

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The iPhone 7 is the most obvious offender. The cheapest version of the 6s retailed for £539; its successor, the 32GB iPhone 7, goes for £599 ($649 in the U.S., then and now). Meanwhile, the highest-end model, with 256GB of storage, is £919—£100 more than its predecessor.

Take the iPad Air 2, Apple’s thin tablet computer. That used to retail for £349 with 16GB of storage. Now, the lowest option is 32GB—and it’ll cost you £379. Cellular options, meanwhile, used to start at £449; it’s now £499. But in the U.S., the price hasn’t changed from $399 for the cheapest storage option, and $529 for the cellular option.

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The 12.9-inch iPad Pro, meanwhile, already had a minimum storage option of 32GB. That now starts from £729, up from £679. (In the U.S.? $799.)

The Apple Pencil, a stylus accessory for the iPad, is now £99 (previously £79).

What’s behind this U.K.-only price increase? An Apple spokesperson told Business Insider that “Apple suggests product prices internationally on the basis of several factors, including currency exchange rates, local import laws, business practices, taxes, and the cost of doing business. These factors vary from region to region and over time, such that international prices are not always comparable to U.S. suggested retail prices.”

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This mention of currency exchange rates suggests that it could be down to the fall in the value of the pound in the aftermath of the Brexit vote. Apple does its accounting in dollars, so may have been forced to put up its prices to compensate for this.

The iPhone 7 is a largely incremental upgrade on its predecessor, the iPhone 6s. Major changes include a better camera, water resistance, and the controversial removal of the headphone jack. Instead, customers are forced to use wireless headphones or plug in their headphones to the Lightning port via the adaptor—something that will prevent them from charging their device and listening to music at the same time.

See also: Apple’s wireless headphones will use something better than Bluetooth

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