Almost all major companies with a global reach have its own pricing policies that differ from market to market. A few months ago, Tim cook while launching iPhone 7 and iPhone 7 plus announced the prices of both the flagship phones.
Without any doubt, iPhone costs way more in India than it does in the US or even china. However, have you ever wondered what might be the reason behind it? Why iPhones are costly in India than other countries? Last year, the price of iPhone 6S started at Rs 62,000 for the basic 16GB version and goes all the way up to Rs 92,000 if you want the high-end 128GB version.
Well, most of the time the reason why iPhone costs more in India than other countries is because of tax tariffs and our very weak currency. If we take a look at the reports provided by Linio, iPhone costs around $470 in Japan and is available for $414. Now if you are wondering how much an iPhone costs in India, it’s $505.
The sole reason behind huge price difference is because India has very high tariffs and taxes, which prevents giant companies like Apple to sell iPhone’s at an affordable price. The other major reason is Apple does not operate on its own, they don’t have their own stores and mostly they sell devices through third party resellers where iPhone’s have to pass through many another middleman before reaching the customers.
So, Apple wants to make a profit in India by increasing their prices as well. Big cities like New Delhi, Mumbai have most expensive real-estate prices in the world and the rents of land are also relatively higher compared to China. So, if you add tariffs, taxes, high rents and other things into the play. Users are bound to get expensive iPhones.