Apple Hikes Prices After VAT Rise

Apple has hiked its prices in the UK after the government upped VAT from 17.5 per cent to 20 per cent on Tuesday.

Despite many other retailers and gadget makers initially choosing to bear the brunt of the tax increase by not raising the prices of their products, Apple has chosen to hike product prices, confident that a small increase in price won't prevent loyal customers from purchasing its products.

The coalition government hopes to raise some $13 billion from the tax hike this year alone, but many analysts have predicted slower retail sales as consumers cut down on purchases thanks to the increased costs.

Tech site Mac Rumors reports that the entry-level price for the iPad has increased from £429 to £439, and that the entry-level Mac Book Pro and iMac are now being offered for £1020.

The cost for the Mac Pro has risen from £1,999 to £2.041, as have the prices for all devices on its iPod range and all iPhones.