Why will the price of iPhone 15 in India be higher than in the US?

 

 Why will the price of the iPhone 15 in India be higher than in the US?

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Apple's much-awaited iPhone 15 is set to arrive in the Indian market, but buyers may be in for a surprise as prices in India are significantly higher than those in the US and Dubai, even though some of these iPhones are manufactured within the country.

The iPhone 15 Pro Max (1 terabyte) is priced at Rs 1,99,900 in India, which is 51% more than the US price of $1,599 (approximately Rs 1,32,717). It is worth noting that this particular model is not yet manufactured in India. For domestically produced models, the price difference is still substantial, up to 20% higher than US prices.

Dubai, on the other hand, offers slightly lower prices, where despite not being manufactured in the UAE, the iPhone 15 is priced at AED 3,399 (roughly Rs. 76,817).

The difference in pricing becomes even more pronounced with the flagship Pro versions, which attract a 22% import duty. The base variant of iPhone 15 Pro in India is priced at Rs 1,34,900 while in the US its price is Rs 82,917. Surprisingly, its price in Dubai is much lower at Rs 97,157. As far as the iPhone 15 Pro Max is concerned, its price in India is Rs 1,59,900, while in America its price is Rs 99,517 and in Dubai, it is Rs 1,15,237.

Several factors contribute to these price disparities. "One reason for this is the supply chain, as many components are shipped after import duties have been paid," said a major Apple distributor. "Also, the scale of the business in India is much smaller compared to the strong volumes in the US and Dubai. ",

Prabhu Ram, head of the industry intelligence group at Cybermedia Research, emphasized that various variables influence the final pricing. "Apple collaborates with partners to offer rebates and trade-in options in the coming year to minimize the impact of basic customs duties and additional taxes on the final pricing of imported models."

He also said that the company's initial focus in India remains on the previous generation models, allowing consumers to gradually move towards the new models. "Our insights point to older generation iPhones driving Apple's growth in India," Ram said.

Navkendar Singh, Associate VP, of IDC India, said, "It is not correct to assume that 'assemble in India' will mean cheaper iPhones. Apple will not drop the prices of newly launched models. Instead, it will invest in marketing, supply and demand." The series, and more importantly, drives aggressive affordable offers for the previous generation iPhone models, which gives the majority of volumes to Apple in India at any given time.''