The proposed move to increase import duty on smartphones by government of India has hit Apple as well. In the country, Apple has increased prices of its top models by an average of 3.5%.
Last week, the tech industry had opposed government’s move to increase the import duty in the country. Since then, it was speculated that all the smartphone companies, including Apple, were considering to increase prices of their top models in the country.
The move of increasing prices might even backfire for Apple as the company has less than 3% marketshare in India. According to a report by reuters, the costliest iPhone in India, iPhone X 256 GB now costs 105,720 rupees ($1,646.61). iPhone 8 256 variant is now available at INR 79,420. The prices of these 2 models in India have increased by 3.6 percent and 3.1 percent respectively.
Last week, the government had announced increasing import duty on assembled smartphones to 15% from the earlier rate of 10%. Apple has been on the receiving end after that announcement as the company only assembles its iPhone SE in India. On the other hand, other competitor companies have started to assemble their top models within India, leaving a very less impact on them.
Currently, Apple solds 10 products in India, including iPad, Mac and iPhones. Out of the 10 products, 9 are completely imported from other countries and these 9 products will be under the hit after the ongoing fiasco.