Why Apple Products Are Expensive In India

Recently, Apple had launched three new iPhones, The iPhone Xs, iPhone Xs Max and iPhone Xr along with a new Apple Watch Series 4.

 

Now, iPhone Xs is basically iPhone X with few upgrades and the iPhone Xs Max is bigger in size with 6.5 inches display. The iPhone XS Max is the biggest smartphone Apple has ever made. The iPhone Xr is a budget iPhone or you can call it a “Sasta” iPhone. By the way the starting price of Xr is 76,900 rupees, so you can purchase a Samsung flagship Note 9 or a Google Pixel 2 XL with this amount of money.

Apple is a premium brand so undoubtedly the price of these smartphones will be much higher. Yes, and it is. With new generations of the iPhones Apple continues to increase the price. New iPhones comes with A12 Bionic chip, the best processor ever in a smartphone, improved cameras, a gorgeous super retina OLED display and a lot more great features. But the biggest problem is price, specially in India.

The starting price of the iPhone Xs in USA is US$ 999 and  goes upto US$ 1349. Whereas the price of the iPhone Xs Max is starts from US$ 1099 to US$ 1449.

If we convert the USD to INR, then the price of iPhone Xs should start from 73,756 Rupees, but it isn’t. It starts from 99,900 rupees. Almost 26,000 higher than USA price.

Now let’s talk about the higher end varient of the iPhone Xs Max ( 512 GB ). If we convert US dollars into Indian rupees then the price should be around 107,034 rupees. But the real price is 1,44,900 rupees. 37,000 rupees more than US price.

Apple uses a simple mathematics for the indian pricing. Just multiply the US pricing by 100. The answer will be the Indian pricing.

Now let’s talk about this price difference. Why Apple products are expensive in India than other countries ?

 

1. Not having manufacturing plants in India

Apple sells its products with a huge network of retail stores in India rather than their official stores and this is because of India’s Foreign Direct Investment(FDI) policy that says that any brand has to source 30 percent of its components locally if it wants to open manufacturing units in the country. Apple collects its components from different suppliers that are produced in 28 countries. Due to this very reason, many multinational brands such as H&M also sell their products at high prices in India.

 

2. Custom Duty

We know that for every product India imports a fixed amount of custom duty is imposed on products. On an average, the total amount of duties on Apple products paid to the government is 11.43% which includes shipping and handling charges also.

Not just Apple, we have seen few months ago Xiaomi had increased the price of the Redmi Note 5 Pro and the Mi TV 4 just because of import taxes.

 

3. Taxes

iPhone accessories such as earphones, chargers come under different categories and Value Added Tax (VAT) is applied on these items which is around 12.5%.

After the central government tax, every brand has to pay different taxes in different states of India and this is probably the reason why prices of iPhones are different in different regions of India.

These are the reasons of the 1.5 lac rupees iPhone. But still Apple can decrease the price by making some deal with the government or by making iPhones in India. There are some charging issue with new iPhones called #ChargeGate, hopefully it will be fixed in upcoming iOS 12 updates. One thing to notice here is, Apple does not provide a quick charger adapter in 1 lac rupees Smartphone ! Few android brands provides better charging adapter at just price of 10,000 rupees. Even Apple doesn’t provide a dongle for the 3.5 mm headphone jack ! You have to spent extra money to purchase that !

If you are looking for best budget smartphone, read this article Best Smartphones Under 20,000 Rupees.

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