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Why iphones are so costly in India?

Date: 02 May 2016    Group: Opinion About    Category: Electronic Items   

We assume that the cost factor is the main reason for most of the Indians to go for Android phones. Generally, we get a doubt like why iphones are so expensive when compared to other smartphones. But the price of the same Apple's iphone model is different for different countries. Why iphones are so expensive in India when compared to other countries like US and Canada? Is it only the tax factor that is causing so much price difference or is there any other reason for its high cost?

Wondering to know the higher cost of i-Phones in India. Our experts would share the reasons for the same.

Author: yogesh    02 May 2016      Member Level: Silver     Points : 2  (Rs 2)    Voting Score: 0

Hello Mate

There are some reason which impact on iphones cost in India. Such as:
1. Custom duty - when iphone imports then the duties charge will be paid to the government which is 11.5%
2. Central government taxes will be added - VAT rate is 12.5%
3. State Government taxes will be added
4. Depreciation of Indian rupee against US dollar is one of the major reason of why iphones are costlier in India.

Author: Pawan Kumar    02 May 2016      Member Level: Silver     Points : 2  (Rs 2)    Voting Score: 0

iPhones Are Costly In India due to custom duty, Central Government Taxes, State Government Taxes, Depreciation of Indian Rupee. In India there are no direct Apple stores instead we have only resellers like apptronix, etc. iPhone has a strong fan base in india, which is the reason why the devices are sold even with high price tags.

Author: Purna Prasad Sharma    02 May 2016      Member Level: Silver     Points : 2  (Rs 2)    Voting Score: 0

Beside custom duty,Central govt. tax,State govt. tax and money value,India is technically and industrially not so developed as compared to US and Canada.So these type of things are costlier in india than them.

Author: Timmappa Kamat    02 May 2016      Member Level: Gold     Points : 5  (Rs 5)    Voting Score: 0

The main reason for the expensive price tag of an iPhone in India are the Taxation policies. Here we go with the breakup -
Customs duty
The total customs duty on iPhones amounts to around 11.43 per cent. This is on amount including the shipping and handling charges.

Central government taxes
The VAT payable on smartphones amounts to around 12.5 per cent. The complete iPhone sales box is not treated under a single code. There are different codes for chargers, headphones and other accessories. Each of them have different rate of taxation.

State government taxes
Then there are taxes levied by the respective state governments. Each state has a different taxation policy. Some of them have Octroi.

Severe depreciation of Indian Rupees against the US Dollars has been the primary reason for the high cost of iPhones here in India.

Apple's infatuation with Premium brand
Though it may seem out of place to make this comment, but it is the fact that Apple wants to make iPhone a premium brand and keep it at that level. In its endeavour to achieve that, it always prices the devices in the high end segment. And fortunately for them, they have buyers who swear by iPhone.

Author: Mahesh    02 May 2016      Member Level: Gold     Points : 4  (Rs 4)    Voting Score: 0

Currency conversion is the main reason behind the high price of US based brands. Most of the chinese brands usually adjust their pricing according to the local brands. However apple doesn't compromise on the local pricing for making sales. So they are one of the most expensive brands from the US.

Any offshore product that comes to india goes through - sales tax, local state taxes and other professional taxes from seller's end. So this is added into the product final pricing too.

Most of the shopping malls and online stores usually buy the phones in bulk. And for that reason they get some wholesalers discount. Still that doesn't cover the profit margin. And so the price is kept high as is.

So the taxes, transaction costs and the profit margin are the reason apple products are costly in india.

Author: Swamy    04 May 2016      Member Level: Bronze     Points : 2  (Rs 2)    Voting Score: 0

I personally think its iPhone's business strategy. The reasons of taxes, rupee depreciation are not much effective here because other bigger android mobile brands like samsung are doing it cheap in India.

Here are the reasons I think-

1. To maintain that "premium phone" tag in India.
2. To differentiate among the bunch of cats (Android)
3. Android is an open source software provided by google, whereas iOS is not.

Author: [Anonymous]    05 May 2016      Member Level: Diamond     Points : 4  (Rs 4)    Voting Score: 0

Other than the above reason, there are some more things that gives high standard for it, and costly device too.

1. Brand (top one in the world for its unique product).
2. High quality tools / parts / components / software / feature.
3. Innovative - no one can compare its model / design and on.
4. Reliable - when you compare other smartphone, the durability is different than this product.
5. Customer Service as per their commitment - they replace a new device within a day in case if the Smartphone issue arises from their end than customer, within warranty period.
6. Multiple advantage of its features and usage including camera performance and storage performance etc.

There are other couple of end users reason that helps their business grow.

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