Why Are iPhones Still Expensive In India Even After They Are Being Locally Manufactured?

In India, Apple’s presence has been rising up since 2016 when the company decided to begin the local manufacturing of some of the models. With the launch of iPhone 15 series it is worth noting that the pricing strategy of these models remain unchanged from the predecessor models of iphone 14 series. 

The iphone 15 pro and iphone 15 pro max now has a higher price tag. The iphone 15 pro is priced at ₹1,34,900 and the iphone 15 pro max is worth ₹1,59,900. There is an increase of ₹5000 and ₹2000 respectively which is a stark rise in the price. 

Source: Apple.com

Reportedly, Apple is now working towards manufacturing the iPhone 15 plus locally in India after the beginning of the iPhone 15 production in India. But despite the local production, the prices of these iPhones are roaring high and touching the sky if we compare them to the prices of Dubai, Singapore and the US. What could be the reason? 

Reason behind the iphone price hike in India

The first and the foremost reason of iphones being pricey in India is that they are not entirely “made in India” but assembled in India. The supply chain for the production of iphones is still dependent on other regions. This results in Apple being exposed to custom duties which impacts the final price. Also the 18% GST on these products lead to a 40% increase in the prices. 

The number of iPhones assembled in India has also increased which has led to a situation where not all models are produced domestically. This prevents Apple from implementing dual pricing tiers  separately for locally assembled iPhones and the imported ones. 

Source: Apple.com

Also, the pricing involves a complex interplay of factors which are beyond the material costs. For this Apple has partnered with local companies to provide discounts and other trade in options because of the impact of heavy customs duties taxes that are imposed on the imported models. 

Conclusively, it is important to note that the price stability of the flagship smartphones is not unique to just the iPhones. Other smartphone companies like Samsung, Xiaomi and Vivo also manufacture their flagship models in India and despite this the prices of their flagship models remain unchanged.

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