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Why is the 1800X £500? $500 should make it ~£400?

amigafan2003 said:
Is it? It's the price we pay to live in a country with good infrastructure, free health care at the point of consumption, free or subsidised education and social safety nets. I for one don't begrudge paying it.
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Not really, VAT is a regressive tax and it's 33% higher now than it was in 2009. VAT and a bunch of other regressive taxes shouldn't really exist in a social democracy but they're a way of disproportionately shifting the tax burden to working people from corporations and the rich (similar to how councils make much more money than they used to from parking fines out of necessity due to government cuts).
 
vanillaface said:
Wrong.
What caused the £'s fall was it's overvaluation.
The Brexit vote was merely the shock which caused the traders to realise this.
If there had been no Brexit vote, then the £ would have lost it's value anyway, since the underlying factors which caused its fall would still have been there.
If the Brexit vote had caused a drop, then it would have rebounded back in short order when everyone realised that it was merely the Brexit vote which caused the fall and not anything else. See the FTSE value since Brexit for details of this.
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Fluctuation sure but there were no signals for a downward correction in the 5-6 years before brexit came on the table. The pound has traditionally enjoyed strength due to the UK's relatively predictable, "safe" economy and London's position in global finance both of which are under threat with brexit and hence no rebound. The current dollar to pound rate is just a preliminary reaction to the vote and going through the motions of article 50, etc. when things are actually being implemented then it could go any direction depending on how the dust settles and the state of the future global economy.

This uncertainty (or atleast that is what my suppliers blame it on) is causing some to "make hay while the sun shines" hence higher prices for many tech goods and poor competition against dollar prices.
 
mmj_uk said:
Prices have always been pretty much 1:1 with the USA even when the Pound was much stronger.
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That is false!

1800X is £416 in the UK, in the USA it is $500
So even now its not 1:1, lets not forget tax, which is applicable in most countries/states.

Just to prove the point, Intel 2700k was launched at $350 in USA plus sales tax
OcUK sold them at £216 in the UK plus VAT

More recently Intel 5960X Extreme launced in USA at $999 plus tax
OcUK launched at £666 plus tax. Yet today they are £850 plus tax, due to weaker pound!

The UK was not typically 1:1, far from it, unfortunately a lot of people enjoy trolling or just lack the education or do it on purpose and fail to mention the sales tax that has to go on the product.


People here compare the GBP price with VAT against the USD price without sales tax which now the pound is 1.20 against the USD gives you a 1:1 ratio,.
 
Rroff said:
Fluctuation sure but there were no signals for a downward correction in the 5-6 years before brexit came on the table. The pound has traditionally enjoyed strength due to the UK's relatively predictable, "safe" economy and London's position in global finance both of which are under threat with brexit and hence no rebound. The current dollar to pound rate is just a preliminary reaction to the vote and going through the motions of article 50, etc. when things are actually being implemented then it could go any direction depending on how the dust settles and the state of the future global economy.

This uncertainty (or atleast that is what my suppliers blame it on) is causing some to "make hay while the sun shines" hence higher prices for many tech goods and poor competition against dollar prices.
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The reason that the £ is weaker than it was, is because of the underlying state of the UK economy.
Since the Brexit vote, our economy, in terms of "how it looks on the face of it" has improved markedly, not only in terms of how it is at this time, but in terms of predictions for the future.
However, the underlying problem of massive public and private debt remains, and this is why the £ has stayed low. If it wasn't for this fundamental weakness, it would have bounced back just as the FTSE did.
 
Is it just me or does it seem like everyday theres yet another thread about hoe expensive uk / eu / ocuk etc is. Come on guys were all supposed to be quite intelligent people here hence the interest in pc's overclocking etc, do some research use the search function and stop blaming Gibbo, ocuk or the current rainfall on costs. Its quite simple

Costs in $ are exclusive of sales tax
Costs in pound include vat (sales tax) currently at 20%
Pound value fell around 20%

Advertised prices compared with $ will be about the same as you need to add tax onto the price of the $ price

Yes there are certain items that are ridiculously over priced (most current nvidia and intel chips) but thats their pricing strategy and is the same world wide
 
vanillaface said:
The reason that the £ is weaker than it was, is because of the underlying state of the UK economy.
Since the Brexit vote, our economy, in terms of "how it looks on the face of it" has improved markedly, not only in terms of how it is at this time, but in terms of predictions for the future.
However, the underlying problem of massive public and private debt remains, and this is why the £ has stayed low. If it wasn't for this fundamental weakness, it would have bounced back just as the FTSE did.
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The value of the pound is certainly related to the confidence in our economy as a whole but you realise the US public debt is far worse than ours, right? The FTSE bouncing back wasn't because the US economy has their debt under control, it's because their political system is set up to work for the rich and corporations with essentially unlimited legal bribery. Sounds like a pretty nice place to invest as a company (although terrible for actual people). Public debt is nowhere near as big of a problem as politicians like to claim, but it fits with our government's narrative, allowing them a reason to continually cut public services that people actually need whilst keeping all their rich friends happy.

The pound is in the crapper and it sucks but I can't see that changing any time soon.
 
DragonQ said:
The value of the pound is certainly related to the confidence in our economy as a whole but you realise the US public debt is far worse than ours, right? The FTSE bouncing back wasn't because the US economy has their debt under control, it's because their political system is set up to work for the rich and corporations with essentially unlimited legal bribery. Sounds like a pretty nice place to invest as a company (although terrible for actual people). Public debt is nowhere near as big of a problem as politicians like to claim, but it fits with our government's narrative, allowing them a reason to continually cut public services that people actually need whilst keeping all their rich friends happy.

The pound is in the crapper and it sucks but I can't see that changing any time soon.
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The $ is still the world's reserve currency and the £ is not.
The FTSE bounced back after Brexit because of the on-the-face-of-it health of the UK economy regarding how profitable its corporations are.
The £ didn't bounce back because of the underlying problems with UK debt.
Hence, the Brexit vote did not cause the £ to stay low; the poor state of UK debt caused it to stay low.

It's no use blaming it on the Brexit vote.
Rejecting rule by a foreign dictatorship does not cause currencies to tank.
 
vanillaface said:
The reason that the £ is weaker than it was, is because of the underlying state of the UK economy.
Since the Brexit vote, our economy, in terms of "how it looks on the face of it" has improved markedly, not only in terms of how it is at this time, but in terms of predictions for the future.
However, the underlying problem of massive public and private debt remains, and this is why the £ has stayed low. If it wasn't for this fundamental weakness, it would have bounced back just as the FTSE did.
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One reason the FTSE did what it did is because the sudden shift in pound/dollar made certain trades (not stock trades) attractive i.e. where US companies held pound debt - if you look at the last few day's headlines the FTSE is now in sharp correction.

You aren't wrong in the underlying shape of the economy is having an effect but it isn't like globally much has changed proportionally in that regard to significantly change the balance - infact many places are showing worse cracks than we are yet the pound has fallen more.

EDIT: Regardless the fact is many companies are citing long term brexit concerns as a reason for pushing up prices to make more money here and now - regardless of who is wrong or right as to the reasoning for the dollar to pound value.
 
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Rroff said:
many companies are citing long term brexit concerns as a reason for pushing up prices to make more money here and now.
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Brexit is being used as an excuse by lots of different entities for this or that.
Price rises? Brexit.
Racism? Brexit.
Anything I want to blame on Brexit? Brexit.

What Brexit actually means is that will will no longer be ruled by a foreign dictatorship and will be free to make our own way in the world.
I wonder if there are people out there who would wish that we had voted to remain, just so that they could enjoy the perception that they could have bought a PC component for 50 quid less.
 
amigafan2003 said:
Is it? It's the price we pay to live in a country with good infrastructure, free health care at the point of consumption, free or subsidised education and social safety nets. I for one don't begrudge paying it.
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Also not having to fear being shot in the street because you happen to be in the wrong place at the wrong time by some nutjob carrying military grade firearms.
 
Everything becomes a brexit thread these days, and we always end up with the same petty arguments over minute little details which really don't matter...

In before the lock... :p
 
Because every one knows all the talent ends up in sales, those that don't make the grade end up in purchasing. It's a matter of wits.
 
vanillaface said:
The $ is still the world's reserve currency and the £ is not.
The FTSE bounced back after Brexit because of the on-the-face-of-it health of the UK economy regarding how profitable its corporations are.
The £ didn't bounce back because of the underlying problems with UK debt.
Hence, the Brexit vote did not cause the £ to stay low; the poor state of UK debt caused it to stay low.

It's no use blaming it on the Brexit vote.
Rejecting rule by a foreign dictatorship does not cause currencies to tank.
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Kind of, the FTSE rose due to those not holding £'s seeing the extra value they got buying £ priced assets as the pound dived in value. It was effectively a certain oneway bet pushing the ftse up as the pound falls.

If you look at the exchange rates they nose dive instantly as brexit is confirmed. This is no accident and just the markets pricing in the brexit risk directly. The uk debt levels have been poor for a long time and did not suddenly change when brexit was anounced except again to price in the risk of an unexpected brexit vote.

This is why we in the uk now see higher prices for tech etc. priced in other currencies. That is along with other factors also affecting us v uk pricing.
 
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