Apple hiked the price of its iPhones, excluding iPhone SE, after the government raised the import duty on mobile phones.
- Mobile imports will now be taxed at 15 percent instead of 10 percent
- Apple has raised prices for all of its phones except the iPhone SE
- The iPhone SE is being assembled in India since May
Apple has marginally increased the price of iPhones in India in view of the government hiking the duty on imported cellphones. However, the cost of the iPhone SE remained unchanged because it was being assembled in the country since June.
The average surge in prices comes up to roughly 3.5%.
The latest iPhone X (64GB model) is now available for Rs 92,430, as compared to Rs 89,000, whereas the top-end model with 128GB storage is priced at Rs 1,05,720, up from Rs 1,02,000. The price hike has also affected the two-year-old iPhone 6 model, which is now available for Rs 30,780 (32GB model). The iPhone 6S (128GB model) , on the other hand, costs Rs 50,660 — up from Rs 49,000.
Here’s the complete list:
The Union government raised the import tax from 10% to 15% on imported handsets in a move to promote the “Make in India” initiative. Apple, which imports an estimated 88% of its smartphones to the country, was believed to be one of the top brands affected by the decision .
With the western and Chinese markets slowing down, Apple has been eyeing India for its next round of growth. According to the company’s latest quarterly earnings, Apple registered double-digit growth in the country during the fourth quarter of the year. “…revenue from emerging markets outside of greater China was up 40%, with great momentum in India, where revenue doubled year over year,” CEO Tim Cook said during the company’s earnings call last month.
Apple reportedly touched $2 billion sales in India recently, although it was badly hit by the demonetisation drive. Apple India posted sales of Rs 11,619 crore ($1.8 billion) for the year ended March 2017, up from Rs 9,937 crore in the year-ago period (translating to 17% growth in a country), Reuters reported last week.
“Last year, older generation iPhones like 4S and 5S entered the mix for Apple and sold very well. For consumers accustomed to seeing Apple models at a minimum price of $400, older generation iPhones proved to be very appealing. What happened, as a result, was that it brought down the overall ASPs for Apple, and thus the slowdown in the pace of growth,” Tarun Pathak, associate director at Counterpoint Research, said.