Steve Jobs discussed the difference in price between the US iPhone ($399) and the UK (£269). Straight pound to dollar conversions results in a UK price of $537, which leads to many a headline screaming: "RIP-OFF BRITAIN".

But it's not that straight-forward. As Steve points out the US price doesn't include Sales Tax, known as VAT (Value Added Tax) in the UK. VAT (Sales Tax) is set at a hefty 17.5 per cent in the UK. In the US, Sales Tax varies by State (and even by County) so it is impractical to include it in the price.

Take off the 17.5 per cent from the UK price and you get a price of £228.94, or $457. The forty-two bucks translates to £20.50. Which is how much extra you're paying to live in the UK. Steve Jobs puts this one down it being simply more expensive to do business here.

We have heard this story from several companies. That it's easier and cheaper to roll out a product across the the US than it is in the UK (or across Europe) because of transport prices, wage difference, import taxes and so on. While we hate paying more than our US buddies, Steve's story doesn't sound implausible.