why iphones are so expensive

Why iPhones are so expensive in India? Custom Duties or Brand Name?

Apple CEO Tim Cook once admitted in an NDTV interview that iPhones are too expensive in India ( back in 2016 when he visited India ). But why an average android is not that expensive as Apple iPhone, Yes I admit they have their best processor in the world and the best smartphone experience but why iPhones are so expensive in India, which gives India a title that “India has the 4th highest prices in the world”.

Over the year from when the first iPhone was in the market, the price is constantly increasing throughout globally

Over the year from when the first iPhone was in the market, the price is constantly increasing throughout globallyInfographic: How The iPhone's Price Developed  | Statista
You will find more infographics at Statista

The best iPhone of the year 2019 termed as iPhone 11 starting from 64,500 Rs. in India, is now 68,300 Rs as of 12th May 2020.

Okay, let’s see how much more expensive an iPhone 11 in India, than other countries.

Why iPhones are so expensive in India

( iPhone 11 price in 8 countries of the world )

And the price of the new iPhone SE 2020 price in some countries are –

iPhone SE price comparison

Now You have seen how the price varies within different countries of the World. But In India this is maximum but why so?

Why iPhones are so expensive in India:

#1: 

If you try to search Apple Retail store in India you will Found 0, Because as of Indian Government Rule if any company wants to open a retail store in India it has to source 30% product from India, which Apple does not in till date, it source products from different counties around the World ( Around 500+ suppliers, from more than 28 countries you can validate from here). Currently, Apple outsources its iPhone Assembling to only two companies FOXCONN and PEGATRON, and only assembled into two countries China & Brazil.

Why apple is so expensive
Photo by zhang kaiyv from Pexels

In India, there are Apple Authorised Stores ( Some Apple Premium Resellers in India are Imagine Store, iPlanetiDeltaiWorldIndiaistoreCurrents, etc. ) who sell Apple products like iPhone, MacBooks, iMacs, all accessories throughout India. Apple has to give its margins to these resellers like shipping, warranty claims, replacements, etc.

#2: 

After that Apple-like companies are premium companies while processing the products or marketing they never degrade the quality of the product because of price compensation, They never compromise with the product. This is why the royal car or bike manufacturers kept more price in India compare to other countries.

#3:

In India Apple iPhone Mostly Imported Under HS Code 85171290, 39269099, 39209999. And the custom duty charges on Apple iPhone are – Basic Customs Duty (BCD)15%, Integrated Goods & Services Tax ( IGST )18%, Total Duty of around 32.8%. ( Which varies state to state ) So this is also a major reason that the iPhones are reaching us at a highly expensive price.

#4:

And also don’t forget That we have to pay for the Brand name “Apple” because it became a luxury brand in today’s world. The Apple ECO System make people mind, again and again, to buy the items in the Apple ecosystem no matter what the product is.

Conclusion:

All these factors are responsible for the constant rise in the iPhone’s price, and that’s why iPhones are so expensive in India. In 2006 the company had sales of less than $20bn and posted profits of almost $2bn. And after years over years, the uniqueness of Apple products, the marketing strategy, etc, all the factors are responsible to make Apple the world’s first trillion-dollar public company. 

So another WHY is cut. I hope your query resolved, please rate this blog and share if you like. Thanks for Reading.

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