Amid the weakening Indian rupee touching Rs 80 for a Dollar, shortage of components and global logistics outcry, Apple has managed to cap the pricing of the non-Pro models but bumped up the Pro models by Rs 10,000 each. Discontinuing the mini, this year’s entry into the iPhone 14 series starts with iPhone 14 starting at Rs 79,900. But the same model (unlocked) would sell for $829 + taxes in the US market. This straight-up translates $1 to Rs 100.
As always, this is the outrage on many social media platforms but what most fail to recognise is the duties and taxes the iPhone attracts. More so because even though Apple is commencing the production of iPhone 14 in India, initially most of the new iPhone 14 models will be imported into the country to start with.
For instance, the iPhone 14 has been priced at $829 in the US. It is not inclusive of the state taxes, which varies from state to state in the US which in some states is 7% and in many even higher. The counterpoint of this is 18 per cent GST, which is standard across India and is included in the maximum retail price. Of the Rs 79,900 iPhone 14, the GST alone amounts to Rs 12,188.14 . This had been added over and above the cost of the iPhone, which also includes duties.
Apple has been expanding its assembly line in India and is commencing the manufacturing of the iPhone 14 in India. Sources at Apple confirmed that the iPhone 14 series will be imported to start with, which also results in additional custom duties. A fully build smartphone unit imported in India draws 22 per cent duties, amounting to approximately Rs 12,210.34 before GST on iPhone 14.
In all, for Rs 79,900 iPhone 14, consumers are paying approximately Rs 24,398.47 in taxes & duties. And for the top-of-the-line iPhone 14 Pro Max that would retail for Rs 1,39,900, the duties and taxes amount to Rs 42,720.23.
Industry sources corroborate, the difference in India pricing is due to various factors with the duties and taxes being the biggest. Other factors also including forex and commissions. For instance, when it comes to calculating local pricing before the launch, other than country-specific duties and taxes, companies like Apple have to keep a buffer for currency fluctuation and volatility too.
The only respite consumers can hope for are the cashback offers. This year, HDFC is offering a cashback of up to Rs 6,000 on the purchase of the new iPhones on orders over Rs 54,900 using credit card. The new iPhone 14 series excluding the iPhone 14 Plus will go on sale in India on September 16 along with the other countries in the first wave.
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