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Plummeting pound to hit cheap iPhone market for tourists

James Pearce
July 6, 2016

Brits visiting US have typically been able to save hundreds of pounds on iPhones, but decline of Sterling means holidaymakers will miss out on a bargain

The falling pound in the aftermath of last month’s EU referendum is set to hit British holidaymakers looking to buy a bargain iPhone.

Since 51.9 per cent of British voters opted to leave the European Union as part of a landmark referendum held on June 23, the pound has plunged to a 31 year low of $1.30.

Brits visiting the US have typically been able to save hundreds of pounds on iPhones and iPads. An iPhone 6s, for example, costs £539 directly from Apple in the UK, compared with $649 in the US – the equivalent of £500 at current exchange rates.

However, Brits looking to buy Apple’s top tech will also need to pay additional taxes. In New York, for example, this is 8.875 per cent, which would increase the cost to $706, the equivalent of £544.

This, the Telegraph claims, is the first time that the cost of the iPhone has been more expensive in the US than in the UK based on currency exchange. It cost just £468 in equivalent exchange in April, prior to the June 23 vote to leave the EU.

OnePlus costs

Apple is not the only manufacturer to be impacted. OnePlus has increased the price of its newest flagship, the OnePlus 3, in the wake of the Brexit vote. From July 11, the OnePlus 3 will cost £329 in the UK, instead of the originally advertised £309.

OnePlus3_Graphite_12In a blog on its website, OnePlus explained: “As we outlined in our heads-up post a few days ago, we’ve seen a downward trend for the Pound against the USD over the past two years. While we’ve held off action for as long as we can, the sharp drop witnessed in the currency markets following the Brexit decision has forced us to re-evaluate the OnePlus 3’s pricing in the UK at a time of significant demand.

“Given the effects of the unstable markets on our extremely thin margins, we’re reluctantly going to have make some small changes to our pricing structure for the device. In practical terms for our customers, this means that from July 11, the OnePlus 3 will be £329 in the UK.”

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