Apple could be forced to pay millions of pounds in extra taxes in the UK after losing a legal battle over whether its smartwatch straps are an accessory that should be taxed individually or part of the device.
Ending a months-long legal battle, a tax tribunal in London has ruled that the straps are “pieces of plastic” and an “accessory”, not part of the technology.
For years Apple has insisted the plastic straps, sold with its smartwatch but imported separately, are an integral part of the electronic product… More at The Telegraph.
This is not as obvious an argument as it may seem, but I can see how Apple lost this one. It won’t be a problem though, they prices will just go up, even higher.