INTRO. 

We’ve all been there, walking inside an Apple shop, see the devices and are quick to realize that the price tag is almost twice the ones that are sold in the U.S.A.

Still, Apple has a huge audience in India that sees the bitten apple as a sign of success and wealth.

But we are not here to talk about that, let’s get into why Apple is so damn expensive in India. 

The Government and Business practices 

Don’t think that I am a hater, I believe that our government is great…

Just not for its business practices.

When you buy a new iPhone Xs that is priced in U.S.A at $999 comes around $1430 isn’t that insane? That is almost 40% higher than the original price. 

The Taxes

The taxes that Apple had to pay for customs duty was almost 11.5%, next is the post-GST takes that 12% there are a few other taxes in between that amount to about 4% to 5%, but you get the Idea. 

The tariff applied to the company that is almost 10% doesn’t give Apple many options to keep it mellow. 

Retailers profit cut

Apple doesn’t have any official Apple store in India yet.

So they source some retailers like UNICORN to act as an outlet for them and they of course happily take % of the money for themselves resulting in a price rise by Apple. 

The Rupee 

The last on this list and for a reason.

The rupee is very weak compared to the strong American dollar, which results in products in rupee being a bit more expensive. 

Let’s take an example of why this is this way.

The OIL that is brought in our country is purchased in Dollars not in Rupee thus dollar being a standard of the transaction and our agreement to accept it.

The same concept applies to any international transaction done by India 

Why this is important 

Seeing that Apple is soon to shift it’s manufacturing line soon to India it will be very interesting to see what price cuts we will see.

There is also an important point in the dominance of the dollar. 

Even though Android phones keep getting better and better there is no doubt that Apple is completely another category and it will never really satisfy Indian needs.

The premium section of this industry is not rewarding for the companies that sell in India be it Android or Ios there is a demand for budget premium. 

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