Breezy explainer: This is why iPhones in India are costlier

iPhone 13 in India costs about 35 percent more compared to what customers pay in the US. Moreover, the pro versions of the iPhone 13 have a price hike of over 60 percent. Read to know why the iPhones have a hefty price tag in India.

iPhones in India: Explanation behind the price hike

The Apple iPhone13 and 13 mini costs almost 36 percent more than it does in the US. However, the iPhone 13 Pro and Pro Max have about 60.5 and 63 percent costlier price tags. The higher price tag is due to several reasons.

For starters, Apple does not have a local manufacturing unit in the country. Hence, it also comes with the taxes and customs duty charges. The hike in goods and services tax (GST) to 18 percent led to an additional increase in prices for iPhones in India. In addition to this, there is an extra two percent increase in the net import duty.

However, iPhone 7 and iPhone SE are relatively cheaper since they are assembled in India. Although their (printed circuit board assemblies) and components are imported to India. But, all other iPhone flagships are imported to India, driving the prices high.

Why does Apple not manufacture in India?
According to the Indian Foreign Direct Investment policy, a company has to source a minimum of 30 percent of its components locally to set up a manufacturing unit. However, it is an impossible task for iPhones. In addition to this, Apple sells its products in India through a very large third-party retail network. Despite having its store, third-party vendors are vital for Apple. And, these middlemen take a large cut.

Will iPhones ever become affordable in India?

Apart from factors such as imports and taxes, iPhones are costly due to the brand value. Apple’s iPhone is a premium smartphone that is a fashion statement. The iPhone 13 is just the cherry of the newest trends. While the tech giant offers a unique ecosystem with almost iron-clad security, for Indians, it is not the selling point.

As of now, manufacturing locally is one of the best ways to reduce the costs of the iPhone. According to reports, Apple could start manufacturing in India soon as the tech firm plans to shift some plants from China to India. According to the latest reports, there is a strong demand to shift manufacturing units from China due to the US-China trade wars.

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