Apple has raised the price of several iPhone models — including the top-tier iPhone 11 Pro and Pro Max — yet again in India, risking denting sales in the country that were just starting to take off.
The price hike is just under 2%, making it smaller than the sizable iPhone price increase Apple introduced in India in 2018. It follows increased import duties announced during India’s Union Budget 2020.
A report from The Hindu‘s BusinessLine notes that mobile phones which were previously exempt from a 10% social welfare surcharge will now be reimposed for imported handsets. Apple will also have to pay 20% basic customs duty for these devices. India’s government has additionally increased the import duty on printed circuit board assembly from 10% to 20%. The import duty on chargers has increased from 15% to 20%.
The iPhone which are increasing in price include the iPhone 11 Pro Max, the iPhone 11 Pro, and the iPhone 8 and 8 Plus. The most expensive iPhone to buy in India, the 512GB iPhone 11 Pro Max now retails for $1,975.95 in the country. That’s about 25% more than it costs in the U.S., where Apple sells an unlocked iPhone 11 Pro Max for $1,449.
Made in India: Embracing locally manufactured iPhone
Meanwhile, the iPhone 11, iPhone XR and iPhone 7 have not increased in price. That is because, at least in the case of the iPhone XR and iPhone 7, both are being manufactured in India. While the new rules don’t make them any cheaper, they make them comparatively cheaper next to the imported handsets. That is purposely designed to boost local manufacturing efforts.
Apple has trying to raise its profile in the India market for some time. India has a population comparable with China. However, despite this population of around 1.324 billion people, more than triple that of the U.S., the iPhone has a market share of just a couple of percentage points in India.
During Apple’s last earnings call, Tim Cook described the “strong performance” in India, although this is still in the single digits. In the company’s most recent shareholder meeting, Cook said that he is a “huge believer” in the potential for growth in India. India’s first Apple Store is due to open later this year or in 2021.
