Why iPhones price is higher in India despite local manufacturing?

After every launch event, we came to see that the prices of iPhones in India were higher than in any other country, in spite of having a local manufacturing unit in the country.

Indian users have repeatedly voiced dissatisfaction with the iPhone Pro models. For the Pro model iPhones, Indian Apple customers have been paying up to a 50% premium over USA prices, compared to a 10% differential for the normal iPhones.

The price of the base iPhone 15 and iPhone 15 Plus models in India, the US, and the UAE will be the first thing we look at. Please notice that the amounts are in Indian Rupee rather than local currencies. A 10% sales tax has been added to the US prices because the Indian pricing includes GST.

As you can see, UAE continues to charge 5% more for Pro versions than the US while the cost of the iPhone 15 Pro and iPhone 15 Pro Max might rise by as much as 45% in India.

Reasons behind iPhones being expensive in India

The newest iPhone 15, the iPhone 14, and other standard versions are the only ones that Apple produces. The iPhone Pro variant is only manufactured in China, according to Counterpoint Research. Apple is therefore forced to ship the iPhone 15 Pro and iPhone 15 Pro Max from China to India.

On fully built phones, the Indian government imposes a 20% import tax. As a result, pricing on iPhone Pro models that Apple imports to India are already 20% more than those there. Additionally, and included in the MRP of the phone, there is an additional 18% GST tax for iPhones.

As a result, the pre-tax price of the iPhone 15 and iPhone 15 Plus is nearly identical in India and the US. Therefore, Made-in-India iPhones are really less expensive than those made in the US, as even the iPhone 15 and the iPhone 15 Plus might have cost 45% more in India.

Apple has been looking for a substitute for China as a source for its phone manufacturing, according to Counterpoint Research. The supply of the iPhone 14 Pro and the iPhone 14 Pro Max was severely limited last year due to a strike by workers at the Foxconn factory in China.

There is a significant likelihood that Apple will start producing the Pro iPhone models in India as a result.

In order to have a supplementary source of production, there is a significant likelihood that Apple would start producing the Pro iPhone models in India. The pricing disparity between iPhone Pro versions in India will undoubtedly decrease if this is true.