Apple iPhones to cost more after Indian government hikes customs by 15%

Apple iPhones to cost more after Indian government hikes customs by 15%

Apple became the first manufacturer to raise prices (on MRP) across iPhone models in India after the government hiked the customs duty from 10 % to 15%

After the government hiked the customs duty from 10 percent to 15 percent for mobile handsets last week. Apple on Monday became the first manufacturer to raise prices (on MRP) across iPhone models, except iPhone SE that the company assembles in the country.

“As expected, Apple has increased the iPhone prices. The interesting thing now is to see how the Indian Apple community reacts to this”. Tarun Pathak, Associate Director, Mobile Devices and Ecosystems, Counterpoint Research expresses¬†eagerness.

iPhone X lovers will have to shell out Rs. 92,430 for the 64GB variant, which was earlier available for Rs. 89,000.

The 256GB variant will now cost Rs 1,05,720 from the earlier price of Rs 1,02,000.

An Apple official confirms the government’s decision. The customs duty hike from 10 percent to 15 percent for mobile handsets, is a statutory industry-wise hike.

The purpose of this move according to the government was to curb the tendency to import and to encourage manufacturing in India as part of the Make in India initiative.

The iPhone 8 will now be available for Rs 66,120 (64GB variant) and Rs 79,420 for the 256GB variant.

The iPhone 8 Plus will cost Rs 75,450 for 64GB variant and Rs 88,750 for the 256GB varient.

The Cupertino-based iPhone maker is also seeking tax relief and other incentives from the government to begin assembling more handsets in the country.

Industry analysts had said that Apple had two choices after the customs duty hike — either to increase the prices or start assembling more in the country.

Apple is currently assembling iPhone SE model at its Bengaluru facility with Wistron Corporation, its Taiwanese manufacturing partner.

Domestic and some China-based manufacturers will not be affected as much as most of them are assembling a lot in the country and just need to rev up their assembly lines, Pathak added.

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