Last week, the Government of India had increased the import tax on several electronic devices including mobile phones. With the hike on import tax, the Government plans to encourage the local manufacturing (or assembling) and domestic industry. Just on the mobile phones, the GoI has increased the import tax by 150%. The increase in import tax won’t have any effect on the manufacturers like Samsung and Xiaomi, who already started assembling their devices in India.
Talking about Apple, it only assembles the iPhone SE in India and rest of the iPhones are imported. Now, the company increased the pricing of all the iPhones except the iPhone SE. With the 150% increase in the import tax, the iPhones are now costlier by 3-4%. According to Counterpoint, Apple imports 88% of the iPhones it sells in India. While the company is lobbying for the special benefits to start assembling in India, the Government is yet to take a decision over that.
With most of the iPhones are imported, the company now came up with revised prices for all the iPhones. According to NDTV, the 64GB storage variant of the iPhone X is now priced at Rs. 92,430 which is Rs. 3,430 higher than the launch price of Rs. 89,000. It is almost a 3.9% hike in the MRP of the iPhone X. The pricing mentioned in the below image is only the MRP set by the company, and the devices will be sold much cheaper than the mentioned prices.
There are also various cashback and discount offers from online stores and credit cards, which further lowers the effective price of the Apple iPhones. Coming to the Chinese manufacturers, even the new entrants are promising to start manufacturing in India. The Government also increased the import tax on other electronics and we can expect the company to come up with the revised pricing in the next few days. For example, the import tax on video cameras & TVs is increased to 15% and 20% respectively.