iPhones: Why are iPhones so expensive in India? Understand how much tax is levied here...

The world is crazy about iPhones, and the craze for iPhones is undeniable globally. However, when it comes to price, iPhone prices in India are enough to make anyone sweat. Even though the company assembles the phones in India, if you look at the prices, you'll notice that iPhone prices are higher than in countries like the US and Dubai.

The 256GB storage variant of the iPhone 17 Pro is priced at ₹1,34,900 in India, while in Dubai, the same phone costs AED 4699 (approximately ₹114,990). In the US, this variant of the iPhone 17 Pro is priced at $1099 (approximately ₹99,048).

While it's true that assembling iPhones in India means there are no longer import duties on the finished product, the higher prices are still due to the tax structure. Even though iPhones are assembled in India, most of their parts, such as the OLED display, chips, and camera modules, are imported from other countries. The heavy import duties on these parts increase the production cost.

In addition, an 18% GST (Goods and Services Tax) is levied on smartphones, which is added to the final price. For example, if the cost of an iPhone is ₹1,00,000, the price after GST will be ₹1,18,000. Import duties on the parts and the GST on the phone itself are the taxes that drive up the price, making iPhones more expensive in India compared to other countries.

iPhones are assembled in India at factories belonging to Tata Electronics, Foxconn, and Pegatron, but this doesn't mean the entire iPhone is manufactured in India. There's a difference between assembly and manufacturing; some parts of the phone are imported from abroad, and currently, only assembly takes place in India, which doesn't significantly reduce the cost.

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