At its recent shareholder meeting, the Cupertino tech giant Apple revealed that it would open its first retail store in one of its biggest untapped market-India. Apple also announced that an online store for the Indian market is launching soon. A new report claims that the Cupertino company might release more expensive flagship iPhones in India because of the import duty hike.
India's Taxes And Regulations
A recent report claims that the previous list of smartphones exempted from the 10 percent social welfare surcharge will be reimposed for imported phones. It means that Apple's iPhones arriving in the country would not be exempted from the social welfare charges. Apart from this, the Cupertino company would also have to pay the 20 percent customs duty for smartphones, reports The Hindu Business Line.
But, it does not stop there. The report adds that India has also increased the import duty from 10 to 20 percent on the printed circuit board assembly. The country also increased the import duty on chargers, which is now 20 percent from its previous 15 percent rate.
Because of this, Apple fans in India could expect a more expensive list of iPhones arriving in the country. It includes the iPhone 11 Pro Max and the iPhone 11 Pro. The iPhone 8 and the iPhone 8 Plus are also getting price hikes in the country. At present, the iPhone 11 Pro Max retails in India at around $1,975.95. If you compare the price in the US, it is almost 25 percent more expensive, retailing at only $1,449.
Locally Manufactured iPhone Models
Aside from China, Apple has manufacturing arms in India. In fact, the prices of the iPhone 11, iPhone XR, and iPhone 7 are still the same, considering that they are manufactured locally. Apple is trying to raise its presence in India. The country's population is almost the same as China, but so far, the iPhone only got a couple of market share in the country.
Other Details
The Cupertino company is currently maintaining its pricing strategy for its iPhones. To better penetrate emerging markets like India. It is planning to launch the entry-level iPhone SE 2 or iPhone 9 that retails at $399 aside from its more affordable iPhone 12 model.
India is one of the markets that Chinese smartphone makers and other Apple rivals like Samsung thrive. The Cupertino company surely sees the potential of the country and would not want to let the competition get all the slices of the pie.
