“Apple Inc has increased the prices of most of its iPhone models sold in India after the government last week raised taxes on imported phones in a bid to boost domestic manufacturing,” Sankalp Phartiyal reports for Reuters. “Barring its locally-assembled iPhone SE model, Apple raised prices of iPhone handsets by an average 3.5 percent, according to a price sheet reviewed by Reuters.”
“Its priciest iPhone X model now costs 105,720 rupees ($1,646.61) for a 256 gigabyte (GB) variant, according to Apple’s India website, an increase of 3.6 percent,” Phartiyal reports. “The price of a 256 GB iPhone 8 has risen by 3.1 percent to 79,420 rupees.”
“As Prime Minister Narendra Modi’s government strives to boost manufacturing of phones in India – the world’s second-biggest market by mobile subscriptions and among the top three countries by annual smartphone sales – it last week raised the customs duty on phones to 15 percent from 10 percent,” Phartiyal reports. “Apple also has plans to expand local manufacturing in India but wants a range of incentives and tax breaks from the federal government which New Delhi has yet to agree to.”
Read more in the full article here.
MacDailyNews Take: Apple is an aspirational brand. So, iPhones become slightly more aspirational in India, until/unless Apple suppliers expand domestic production.
SEE ALSO:
India raises import tax on electronic products, including cellphones; move to hurt Apple – December 15, 2017
Apple slashes prices of iPhone 7, iPhone 7 plus, iPhone 6s in India – September 14, 2017
Apple seeks tax breaks for suppliers to make iPhones in India – August 1, 2017
Indian Prime Minister Modi meets with Apple CEO Cook ahead of President Trump today – June 26, 2017
Apple broadens their iPhone attack in India, the world’s second biggest mobile market – June 22, 2017
Apple is making old iPhones new again to win India – June 12, 201
Apple again asks Indian government to allow sale of certified refurbished iPhones in India – February 6, 2017
Indian IT minister says Apple plans to make iPhones in Bengaluru – February 3, 2017
Apple nears deal to manufacture products in India – January 25, 2017
Apple is ready to make iPhones in India, for a price – January 20, 2017
India to consider Apple request for tax breaks and policy exemptions with ‘open mind’ – January 18, 2017
Apple is horse-trading mightily with India – January 4, 2017
Prime Minister Modi’s intention while interesting is completely mismatched with the technical and training infrastructure India actually has at present. Thanks to Western influences, a tiny percentage of India’s population has education and cultural consciousness comparable with its First World parents. Prime Minister Modi’s _aspirational_ fantasy is that India is remotely competitive with China. He is shooting himself in the foot by making this policy at this juncture in India’s ascendance. Give India a generation or two, with continued Western education and acculturation, and they there will be some steak along with the sizzle. Prime Minister Modi in some ways is sabotaging this possibility by widening the chasm between the Haves and the Have-Nots. He won’t miss his annual iPhone; he can afford it. Others: not so much.
dan
As with China, only a small fraction of the population in India can afford a new iPhone model. Fortunately for Apple with the population of a billion, that small faction is still a large number. In the tech areas like Bangalore, the proportion of middle class is higher than average. Apple will continue to sell phones there but most will be of the cheaper kind.
Corporations don’t pay taxes, they are just a collection agency. They pass the cost through to the consumer. Modi just sent his iPhone populace a new tax bill.