Iphones Can Be Cheaper From Next Year In India- This Is The Reason Why
I, as a resident of India has always seen that iphones are very expensive. A single unit of iPhone XR costs $749 (Rs 53000) in United States whereas it costs almost $1100 ( Rs 74000) in India. There is a $300( Rs 21000 ) difference. In $300 there are a plenty of mid-range, high specification smartphones in the Indian market largely occupied by Xiaomi, Oppo , Vivo & Samsung. Hence from last two years Iphone sales hasn’t seen much of a growth & reached a standstill. Taking this into consideration apple has decided to take necessary steps to occupy this vast smartphone market.
Reasons For Such A High Price
The main reason for such a high price is a hefty amount of export duty. Ok… Without getting into much of technical analysis, I’ll try to explain it as simple as possible.
Since BJP government came to power, it made their agenda from the first day onwards that if a foreign company wants to enjoy this vast market then it has to manufacture its products inside India or else they have to pay a huge amount of export duty. For this the government also launched the “Make In India” program to encourage companies to manufacture in India. To promote Make in India and also demotivate the imports, Government has increased the import duty on ready made phones and its accessories.
Do you ever wondered that why is the price of iPhone SE is so low compared to other previous iPhone versions ?? The reason is it is manufactured in India in a facility in Bangalore.
The Reason Why Prices May Come Down From The Next Year
The Taiwanese manufacturer Foxconn which manufactures and assembles Iphones & it’s accessories for Apple plans to invest 1500 crores as part of expansion in India. Importantly, Foxconn will be assembling the most expensive models, such as the iPhone XS, iPhone XS Max and iPhone XR, potentially reducing the prices of these phones by 30% as reported by a source.
Foxconn and Apple have neither confirmed nor denied the report as of now. If the reports are true, we might see a reduced cost of iPhone X variants in India and it may also help Apple to strengthen their position in the world’s fastest-growing smartphone market.