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Why is iPhone XS & XS Max so expensive in India? | Tech Talks

Love them or hate them, one thing is a sureshot fact, almost everyone dreams of owning an iPhone. Be it their premium looks, the awesome software experience or just the ability to flaunt them among the peers, iPhones invoke an impressive amount of interest from the consumers.

However, in India, a majority of the people are not able to buy the latest and greatest iPhones thanks to their excessive pricing.
Why is iPhone XS & XS Max so expensive in India? | Tech Talks
Source: Apple

With flagship-level devices like OnePlus 6 selling at lower than half the cost of the latest iPhones, Indian consumers find it hard to spend so much money on the highly expensive Apple smartphones.

But why are iPhones so expensive in India?

Is Apple trying to make a fool of us Indians?

Let's find out in this article.

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Apple iPhone XS - India Pricings

As all iPhone fans in India might be aware, the iPhone XS costs RS 99,900/- whereas it costs only $999 in the United States.

Taking 1$ = Rs70 as the exchange rate, it only converts to Rs 70,000/-.
Then how come the iPhone XS costs RS 99,000/- in India?

The Indian policies and excise duties are to be blamed for this!

In India, Government has imposed an import duty of 20% on the cost of the device. This has been done by the Indian Government to safeguard companies who manufacture in India and also to promote manufacturing in India.

So, 20% of 70,000 = 14,000

Adding this to the cost gives us Rs 84,000/-.

So thanks to the addition of the high import duty, the price has already jumped to over Rs 80k.

Now, the taxes don't end there! There is now the GST that needs to be added to this price.

In India, the GST rate applicable to smartphones is 12%.

So 12% of 84,000 = 10,080.

Adding this to the price, we get a price of approx Rs 95,000/- which is almost what the iPhone XS costs in India right now.

Remaining minuscule price gap can be attributed to small charges like Swach Bharat cess, shipping costs etc.

How Apple can lower prices in the future?

As you can see, iPhones are not expensive because Apple is a very greedy company!

Yes, it is a premium brand and prices its devices at a premium, but most of the high prices in India are due to the high tax rates.
Unlike other Chinese brands that price their device much lower, they don't have to deal with high import duties as many companies assemble their phones in India. They also don't have any R&D costs and they can afford to price their devices at a cheaper price, to begin with.
If Apple has to lower prices, it has to take the Indian much more seriously and start assembling phones in India. Currently, it does assemble a few smartphones in its India factory and those devices sell at quite a reasonable price. It needs to increase manufacturing it India so that it can get rid of the Import duty.

Also, manufacturing in India will help it lower its labour costs and it need not directly convert its India prices from $.

Look at Samsung for Example. It's premium flagship device - the Galaxy Note 9, is priced at $999. Yet it costs only Rs 67,000 in India. This is because it assembles Note 9 in India. So it can price it lower and still retain profits.

If Apple starts manufacturing its latest smartphones in India, it will also be able to price its devices reasonably. Till then, iPhones will remain an expensive purchase.

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VIKALP GAUTAM
I am an ardent Techie and a Free Thinker. I love to explore new topics and technologies, and share my knowledge and views with the world.
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Comments

  1. Information is very informative also you get same from nexter.org/, this is the great resource to get such type of information about Tech news.

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