Only three days have passed since the iPhone 15 series, the newest phone from Apple, started selling in India. People have been waiting in lines for hours outside Apple stores in Delhi and Mumbai to purchase the iPhone 15, proving that the iPhone mania knows no borders. Despite rising domestic production, India continues to have much higher prices for iPhones than the US, Dubai, and Singapore. There are numerous factors contributing to this pricing difference. Continue reading to find out.
iPhone 15 Series: Prices In India
In India, the iPhone 15, which costs $799 in the United States, is available for Rs 79,900 ($965). The $1,199 iPhone 15 Pro Max is being offered at a record-breaking Rs 1,59,900 ($1,930), while the $999 iPhone 15 Pro is being sold for Rs 1,34,900 ($1,628).
iPhone 15: Reason Behind The High Prices
First, although they are manufactured there, iPhones are not “made in India.” The supply chain for iPhone manufacturing still depends on parts coming from abroad. As a result, Apple is charged customs fees, which have an immediate effect on the ultimate costs. The cost is also increased by the 18% Goods and Services Tax (GST). This brings the total increase to the final price to 40%.
Beyond just material costs, pricing involves a complicated interplay of other factors. Apple has worked with local businesses to offer discounts and trade-in possibilities to offset the negative effects of high customs charges and taxes on imported models.
Base Models Hold More Accessibility
It’s important to remember that older iPhone models account for a sizable portion of Apple’s Indian sales. Analysts contend that base models and iPhones from earlier generations are made more accessible by the profit margins generated by the sale of Pro versions. Due to the significant price cuts brought about by this method, India now offers iPhones at a lower cost.
Even while the quantity of iPhones built in India has increased dramatically over time, not all models are made there. Due to this fact, Apple cannot adopt two pricing tiers for domestically assembled and imported iPhones.
Smaller Scope Of Business In India
Apple did move the pricing of iPhones internationally, mostly to reflect currency movements. However, in contrast to last year, when a strong dollar forced Apple to increase prices in the majority of foreign currencies to maintain prices in dollar terms, smaller moves in the dollar meant that price adjustments were more mixed. Apple increased prices in Japan and for the Pro models in India. However, lowering them in Europe – all in line with currency moves, according to analysts at AllianceBernstein.
So, the Indian rupee’s decline in value versus the dollar over the past year is one of the factors contributing to the iPhone 15’s higher pricing in India.
According to ET, a number of variables are responsible for these price differences. One of the causes, according to a significant Apple distributor, is the supply chain, as some components are sent following the payment of import duties. Additionally, India’s business is far smaller in scope than similar-sized markets like the US and Dubai.
What Is Apple Planning For India?
Apple is reportedly planning to more than fivefold its production in India over the course of the next five years. Since starting to produce select iPhone models locally in 2016, Apple has increased its footprint in India. The India Cellular and Electronics Association (ICEA) and government representatives have reported that India’s smartphone exports exceeded $11 billion in the fiscal year that ended in March, above the $9 to $10 billion objective. Interestingly, Apple was responsible for over half of these shipments.
After a good start to iPhone 15 production in India, Apple is preparing to produce the iPhone 15 Plus in the future quarter, according to the ET report. This change highlights the four years of stable development for iPhone production in India, which is projected to increase by about 6% by 2023.