Wednesday, February 22, 2012

Price of being British; Two hot new gadgets launch...and again we pay more than in U.S.(News)

Byline: Sean Poulter Consumer Affairs Editor

THEY are the cutting edge gadgets that promise to change the face of gaming and mobile computing.

But as Apple and Nintendo launch their latest technological advances in the UK tomorrow, one thing hasn't changed - the hefty premium for being a British consumer.

Both the Nintendo 3DS console and Apple iPad 2 will be significantly more expensive than they are in the U.S.

While the official UK price for the Nintendo device stands at [pounds sterling]229.99, a shrewd purchase in New York might set you back as little as [pounds sterling]167.66, including sales tax.

This means British consumers paying an extra [pounds sterling]62.33, or 37 per cent compared with the U.S.

The console, which goes on sale in the UK at midnight, is the first handheld device to offer games, entertainment and films in 3D without the need for special glasses.

For iPad fans the news is just as depressing. The second generation of the pioneering tablet computer, which is thinner, lighter and faster than its predecessor, could cost [pounds sterling]100 more here than it does in the U.S. The iPad 2 goes on sale in the UK at 5pm tomorrow.

The starting price, including VAT, for the basic 16GB model is [pounds sterling]399. That is [pounds sterling]64.75, or around 20 per cent, more than the price a New York shopper would pay, again including the city's sales tax.

The highest-spec model is [pounds sterling]659 here including VAT, compared with [pounds sterling]554.18 in New York. This means a British consumer will pay [pounds sterling]104.82 more than their American counterpart.

The differential can be explained partly by the fact that Britain's VAT of 20 per cent is more than double the 8.875 per cent maximum in New York.

However, even taking this into account, it seems technology giants continue to see Britain as a 'Treasure Island' where they can get away with charging more. Some UK retailers are attempting to soften the blow with special deals.

Currys.digital is opening up two stores, one in Oxford Street, London, and another in Birmingham, just before midnight tonight with a promise to let the first 150 customers have the Nintendo 3DS console for [pounds sterling]179.

But mark-ups are not unique to technological products. Fashion brands such as Ralph Lauren, Zara and Gap have been reported doing similar things.

And historically, British consumers have also paid more for cars than buyers in Europe.

Manufacturers insist that where prices are higher this is because it is more expensive to do business in this country as a result of high rent, rates and staff costs. Successive governments have promised to tackle the high prices in 'rip-off Britain'.

But the current Government is pulling apart the nation's consumer protection regime and scrapping the Office of Fair Trading.

The latest hikes come as figures this week revealed inflation has risen sharply to 4.4 per cent.

s.poulter@dailymail.co.uk

THE NEW TOYS... AND THE UK PREMIUM

Nintendo 3DS Two screens. 3D only on the upper screen.

Lower one is a control touchscreen.

Two cameras that can take 3D pictures.

5.3in wide, 2.9in long and 0.8in thick when closed.

Weighs 8oz.

Films include - Toy Story 3, Alice in Wonderland, Tangled.

Games include - Nintendogs, Ridge Racer and Pro Evolution Soccer 2011.

Wi-Fi link to internet enabling gaming anywhere in the world.

Battery life - up to 5 hours.

Apple iPad 2

Two cameras - one facing forward and one back to allow video calls/conferencing.

9.5in tall, by 7.5in wide and 0.34in thick. Weighs 20.8oz.

High definition 9.7in touchscreen.

Storage - 16GB;32GB; 64GB.

Higher spec versions connect to the internet over both Wi-Fi and 3G mobile.

Bespoke dual core high speed operating chip called the A5.

60,000 Apps -ranging from games to maps.

Battery life - up to 10 hours.

Top of the range iPad 2

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