Smartphone markets are buzzing ever since the world's largest company in m-cap, Apple Inc, launched its latest iPhone 12 series this month. Though Apple fans all over the world want to be the first one to get the new iPhone, this smart device comes with a heavy price tag, especially for users in India. They have to pay the highest taxes (goods and services tax + basic customs duty) of around 44 percent on imported iPhones.
Interestingly, Apple iPhone 12 series smartphones are so costly in India that it can cover travel expenses to Gulf countries like UAE. Even after considering the travel cost of a short trip, your total expense of buying an iPhone 12 series smartphone in a swanky mall would be the same as that of buying an iPhone 12 in India.
The reason for exorbitant prices in India are taxes and duties, which are one of the highest in the world. India charges 18 per cent GST on smartphones. Add to that the basic customs duty of 20 per cent and 2 percent cess and your basic new iPhone 12 mini price will shoot up by Rs 21,344 in the country. Same is the case with higher-end iPhones. On imported iPhone 12, Indians have to pay around Rs 24,38.47 in taxes and duties, while it goes by Rs 36,612.98 and 39,666.60 for iPhone Pro and iPhone 12 Max, respectively.
On comparing prices in countries like Dubai, Singapore and the US in rupees, India's price tally goes way higher. While iPhone 12 Mini (128 GB) will cost Rs 74,900 in India, it'll cost Rs 59,286 in the US, Rs 67,186 in UAE and Rs 62,068.98 in Singapore.
The iPhone Pro (256 GB) will cost Rs 1,29,000 in India, while Rs 87,792 in the US, Rs 96,732 in Dubai and Rs 96,957.2 in Singapore. The price difference in India and places like the US, Dubai and Singapore is as high as Rs 48,000, though it depends upon the iPhone model you
buy. The prices are based on current value or USD and AED and Singapore dollar.
Multiple factors affect the pricing of the iPhone 12 in India. "The biggest one is assembling in India, which Apple is likely to ramp up in coming times. Other factors including forex, GST and supply chain, which also play an important part in pricing," Tarun Pathak, Associate Director, Counterpoint Research, had earlier told BusinessToday.In.
Can you buy an iPhone 12 at a cheaper price?
Partnering with banking institutes to offer aggressive affordability offers like cash back and zero EMIs brings down the upfront cost of the iPhone. As the above factors contribute to the India pricing of the iPhone, users can bring down the cost by availing cashback offers. Those with a GSTIN number can even claim GST input credit. While cashback will be standard across Apple online stores, e-commerce portals and offline stores, consumers might find it easier to claim GST on Flipkart over Amazon.