Why is the iPhone so expensive in Europe?

seriously, the iPhone 4 will be $200,- in the US but in the UK it will be £500 ($740)
what causes this immense price difference? do they get carried over the Atlantic over a gold plate one by one?

The real price of the 16 GB in the US is $600 before sales tax. The $200 price is only if you buy it with a 2 year contract. It's like buying it on a time payment plan; you pay $199 down and pay off the rest as part of your monthly bill. It's probably VAT in the UK that brings it up from $600 to £500.

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