Apple iPhone 15 series is here. Apple’s latest-generation iPhones will go on preorder in India starting September 15 and on sale starting September 22. The pricing of the new-generation iPhone models, iPhone 15 and iPhone 15 Plus, in India, is the same as their predecessors iPhone 14 and iPhone 14 Plus. The starting prices of Pro models, iPhone 15 Pro and iPhone 15 Pro Max have increased. Apple iPhone 15 Pro is now priced at Rs 1,34,900 and iPhone 15 Pro Max at Rs 1,59,900; this translates to an increase of Rs 5,000 and Rs 20,000 respectively. Incidentally, Apple has doubled the base storage of the iPhone 15 Pro Max to 256GB from 128GB. Also, the increase in the prices of the iPhone 15 Pro Max has been done globally.
Since 2106, Apple has been making some iPhone models in the country. India’s smartphone exports more than doubled, reaching over $11 billion in the fiscal year that ended in March, according to industry body India Cellular and Electronics Association (ICEA) and government officials. Smartphone exports of $11.2 billion surpassed the target of $9-10 billion with Apple making up almost half of the total exports.
Now reports suggest that Apple will locally produce the iPhone 15 Plus in the next quarter, having successfully started production in India of the base model of the series, the iPhone 15. iPhone domestic manufacturing in India, as per CMR, has increased over the past four years. For example, the iPhone manufacturing in 2020 was around 1% and in 2023 it is expected to hover around 6%.
The prices of iPhones in India are significantly higher compared to those in the US, Dubai, Singapore and some other countries. This makes many wonder why the high prices even though some of these iPhones are manufactured within the country. Here are some reasons
The duty and GST factor
It has almost become an annual ritual now (since past few years), every time in September when the new iPhones are announced, there’s a sense of expectation that the price of iPhones will go down. More so, because now iPhones are ‘made in India’. As we said, they aren’t per se ‘made in India’ entirely and that there’s an another important aspect to this.
iPhones are not still ‘entirely made in India’, but assembled in India. Reason been the supply chain. All the components required for iPhone production are not manufactured in India. Consequently, Apple has to pay customs duties, which ultimately keeps the prices unchanged. And don’t forget the GST that is levied, which the buyers have to pay. The custom duties Apple pays is around 22%. Add another 18% GST to it, the cost is up by 40%. All this adds to the cost of buying an iPhone in India as all these taxes and duties drive up the prices.
A lot of factors go into pricing
Also, the pricing of any product is not just the bill of materials cost. There are a lot of other things that go into it. All these factors need to be considered while arriving at the final price. Apple is said to collaborate with partners to offer discounts and trade-in options to mitigate the impact of heavy customs duties and additional taxes on the final pricing of imported models.
Also, older-generation models drive the majority of sales for Apple in India. Analysts say that the margins the company makes on the sale of ‘Pro’ models help it improve the affordability of base models as well as that of older-generation models. The base model of Apple iPhone 14 has been available at an average price of Rs 65,000 (with card offers and more) at most Apple retailers since January this year. The price is almost Rs 15,000 less than its launch price of Rs 79,900. The same has been the case with the iPhone 13 launched in 2021, which was available at similar prices after almost three months. At these prices, these iPhones are a better buy in India than in Dubai and Singapore.
Not all iPhone models sold in India are made in India
Over the years, the number of iPhones made in India has gone up exponentially. Still, not all models are ‘made in India’ nor all the devices sold in India are ‘made in India’. So, Apple really can’t have two pricing tiers – one for those assembled in India and another for those that aren’t made in India.
Prices of no ‘made-in-India’ smartphone has gone down
Not just Apple, other smartphone brands like Samsung, Oppo, Xiaomi and Vivo too manufacture phones in India. This includes several flagship phones. However, over the years, the prices of flagships have remained the same.
Since 2106, Apple has been making some iPhone models in the country. India’s smartphone exports more than doubled, reaching over $11 billion in the fiscal year that ended in March, according to industry body India Cellular and Electronics Association (ICEA) and government officials. Smartphone exports of $11.2 billion surpassed the target of $9-10 billion with Apple making up almost half of the total exports.
Now reports suggest that Apple will locally produce the iPhone 15 Plus in the next quarter, having successfully started production in India of the base model of the series, the iPhone 15. iPhone domestic manufacturing in India, as per CMR, has increased over the past four years. For example, the iPhone manufacturing in 2020 was around 1% and in 2023 it is expected to hover around 6%.
The prices of iPhones in India are significantly higher compared to those in the US, Dubai, Singapore and some other countries. This makes many wonder why the high prices even though some of these iPhones are manufactured within the country. Here are some reasons
The duty and GST factor
It has almost become an annual ritual now (since past few years), every time in September when the new iPhones are announced, there’s a sense of expectation that the price of iPhones will go down. More so, because now iPhones are ‘made in India’. As we said, they aren’t per se ‘made in India’ entirely and that there’s an another important aspect to this.
iPhones are not still ‘entirely made in India’, but assembled in India. Reason been the supply chain. All the components required for iPhone production are not manufactured in India. Consequently, Apple has to pay customs duties, which ultimately keeps the prices unchanged. And don’t forget the GST that is levied, which the buyers have to pay. The custom duties Apple pays is around 22%. Add another 18% GST to it, the cost is up by 40%. All this adds to the cost of buying an iPhone in India as all these taxes and duties drive up the prices.
A lot of factors go into pricing
Also, the pricing of any product is not just the bill of materials cost. There are a lot of other things that go into it. All these factors need to be considered while arriving at the final price. Apple is said to collaborate with partners to offer discounts and trade-in options to mitigate the impact of heavy customs duties and additional taxes on the final pricing of imported models.
Also, older-generation models drive the majority of sales for Apple in India. Analysts say that the margins the company makes on the sale of ‘Pro’ models help it improve the affordability of base models as well as that of older-generation models. The base model of Apple iPhone 14 has been available at an average price of Rs 65,000 (with card offers and more) at most Apple retailers since January this year. The price is almost Rs 15,000 less than its launch price of Rs 79,900. The same has been the case with the iPhone 13 launched in 2021, which was available at similar prices after almost three months. At these prices, these iPhones are a better buy in India than in Dubai and Singapore.
Not all iPhone models sold in India are made in India
Over the years, the number of iPhones made in India has gone up exponentially. Still, not all models are ‘made in India’ nor all the devices sold in India are ‘made in India’. So, Apple really can’t have two pricing tiers – one for those assembled in India and another for those that aren’t made in India.
Prices of no ‘made-in-India’ smartphone has gone down
Not just Apple, other smartphone brands like Samsung, Oppo, Xiaomi and Vivo too manufacture phones in India. This includes several flagship phones. However, over the years, the prices of flagships have remained the same.
