BT Exclusive: Indians to pay Rs 41,193 in taxes & duties for Rs 1,34,900 iPhone 15 Pro

As the Indian rupee weakens and crossed 83 to the Dollar last month, Apple again capped the pricing of the new iPhone 15 and iPhone 15 Plus. But this year’s iPhone 15 Pro models have received a price bump. The iPhone 15 Pro (128GB) variant is priced starting Rs 1,34,900. But the same model (unlocked) would sell for $999 + taxes in the US market, approximately Rs 90,000. As many consumers complain about the price difference between the two countries, many fail to recognise that there are duties, and taxes levied on iPhones in India.

For instance, the iPhone 15 Pro priced at $999 in the US does not include state taxes, which vary from state to state in the US—in some states, it is 7 per cent, while in others it could be higher. The counter to this is 18 per cent GST that is standard across India and is included in the maximum retail price. Of the Rs 1,34,900 iPhone 15 Pro, the GST alone amounts to Rs 20,577.97. This had been added over and above the cost of the iPhone, which also includes duties.

Apple has been expanding its assembly line in India and has commenced manufacturing the iPhone 15 here. However, the Pro models are still made in China, and shipped to the rest of the world, including India, from there.

Even though Apple has commenced the production of iPhone 15 in India, components attract duties ranging from 2.5 per cent to up to 12 per cent says Faisal Kawoosa, founder and Chief Analyst at Techarc. But for the iPhone 15 Pro models that will be imported into the country, the duties are higher—20 per cent customs duty and 2 per cent cess, confirms Tarun Pathak, Research Director at Counterpoint Research.

This means a fully built smartphone unit imported into India draws 22 per cent duties. In the case of the iPhone 15 Pro, it amounts to 20,615.45 before GST. In all, for Rs 1,34,900 iPhone 15 Pro, consumers are paying approximately Rs 41,193.42 in taxes & duties. And for the entry-level variant of iPhone 15 Pro Max (256GB) that would retail for Rs 1,59,900, the duties and taxes amount to Rs 48,827.48.

The difference in Indian pricing is due to various factors, with the duties and taxes being the biggest.

Other factors also include forex and commissions. For instance, when it comes to calculating local pricing before the launch, other than country-specific duties and taxes, companies like Apple have to keep a buffer for currency fluctuation and volatility too.

The only respite consumers get are the trade-ins and cashback that Apple offers. There is always an option to trade in the old smartphone while purchasing a new one. And this year, HDFC Bank is offering Rs 8000 savings on the purchase of the new iPhones.