As you all know, Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
Since 2008, Apple's smartphone has consistently sold at lower rates in the US than in India when converted to rupees.
Since 2008, Apple's smartphone has consistently sold at lower rates in the US than in India when converted to rupees.
What accounts for this incredible price difference?
So, we got some major reasons why all the Apple products are so expensive especially in India :
As Apple started to develop and sell PC's, they never compromised with components they're putting into their products as they provide best of it all the time. Along with that premium quality, they ensure that they're providing an excellent product to their customers.
OS Pricing :
There is also a reason that Google provide a negligible pricing OS to any other android companies which they can use and launch the smartphone but the iOS provides with more cost and obviously with better security.
Performance and Marketing:
As we all know that Apple products give the best performance out of it when it gets launched, but this doesn't justify that big amount which its customers have to pay. As Apple use their own things like Safari, iCloud etc. because of this they use to bound their customers towards it, if they want to upgrade it for the next time they will proceed to Apple only.
Nowadays it is becoming a status and lifestyle symbol as Apple never gets into the mid-range or budget series as they're proceeding now a huge brand, and people are there to pay a huge amount just for the Apple symbol.
In September 2017, Apple announced the launch of its much-anticipated iPhone in the United States starting at $999. When the smartphone finally hit the Indian market its 256GB version was priced at more than Rs. 1 lakh. An online article joked that it was so expensive that you actually flew to Hong Kong buy it for a cheaper rate, then return to India and still save money. This is not exactly new for iPhone fans in India.
For starters, Apple has been selling its phones and every other product in India through a huge network of authorised retail stores. But not through its own Apple store. That's because India's policy towards investment says for a single brand like Apple to set up its own sore in the country it has to source at least 30% of its product components locally. Which it currently does not do. At present, the hundreds of components that make up a single iPhone come from as many as 700+ suppliers based in 28 countries. The local-sourcing clause has affected the business of many other brands such as the Swedish clothing retailer H&M and the Chinese smartphone maker Xiaomi who argue that they can't bring a larger international product assortment to Indians.
Indian customs:
The Indian government can relax the 30% rule if companies use cutting-edge or state-of-art technology to make their products but with both terms defined unclearly, no foreign company has yet managed to get an exemption. Not even Apple and then there is a value-added tax smartphone that varied across stays between 5%-14%. All of which there are 12% Goods and Services tax and of course custom duty which stays b/w 15%-28% specially for iPhones and for accessories it is fixed as 28%.
As Apple started to develop and sell PC's, they never compromised with components they're putting into their products as they provide best of it all the time. Along with that premium quality, they ensure that they're providing an excellent product to their customers.
OS Pricing :
There is also a reason that Google provide a negligible pricing OS to any other android companies which they can use and launch the smartphone but the iOS provides with more cost and obviously with better security.
Performance and Marketing:
As we all know that Apple products give the best performance out of it when it gets launched, but this doesn't justify that big amount which its customers have to pay. As Apple use their own things like Safari, iCloud etc. because of this they use to bound their customers towards it, if they want to upgrade it for the next time they will proceed to Apple only.
Nowadays it is becoming a status and lifestyle symbol as Apple never gets into the mid-range or budget series as they're proceeding now a huge brand, and people are there to pay a huge amount just for the Apple symbol.
In September 2017, Apple announced the launch of its much-anticipated iPhone in the United States starting at $999. When the smartphone finally hit the Indian market its 256GB version was priced at more than Rs. 1 lakh. An online article joked that it was so expensive that you actually flew to Hong Kong buy it for a cheaper rate, then return to India and still save money. This is not exactly new for iPhone fans in India.
For starters, Apple has been selling its phones and every other product in India through a huge network of authorised retail stores. But not through its own Apple store. That's because India's policy towards investment says for a single brand like Apple to set up its own sore in the country it has to source at least 30% of its product components locally. Which it currently does not do. At present, the hundreds of components that make up a single iPhone come from as many as 700+ suppliers based in 28 countries. The local-sourcing clause has affected the business of many other brands such as the Swedish clothing retailer H&M and the Chinese smartphone maker Xiaomi who argue that they can't bring a larger international product assortment to Indians.
Indian customs:
The Indian government can relax the 30% rule if companies use cutting-edge or state-of-art technology to make their products but with both terms defined unclearly, no foreign company has yet managed to get an exemption. Not even Apple and then there is a value-added tax smartphone that varied across stays between 5%-14%. All of which there are 12% Goods and Services tax and of course custom duty which stays b/w 15%-28% specially for iPhones and for accessories it is fixed as 28%.
It has been pointed out that if Apple sets up manufacturing or assembly units in India there might be a significant drop in prices of Apple products. Currently, Apple outsources its iPhone assembly to only two Taiwanese companies Foxconn and Pegatron. The product is put together only in two countries, China and Brazil. From time to time apple suppliers have planned to manufacture units in India but nothing has so far taken complete shape. Except for the one time in July 2017. When a limited number of iPhone SE models that rolled out from a plant near Bengaluru.
The world bank currently ranks India 100th out of 190 nations on the ease of doing business giving it relatively low marks for starting a business, enforcing contracts and dealing with construction permits. But with India's labour force available at cheaper rates than China's and its market showing more than favourable signs for iPhone sales.
The day might not be too far before Apple sets up assembly shops in the country, and you don't need to fly all the way to Hong Kong to buy your Apple product.
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If you think there is any other reason for this also, let us know about it in the comment section
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