Indian customers looking to buy the new iPhone 12 lineup in India should get ready to pay a hefty tax and duty. Due to government tax and duties, Apple is being forced to place the financial burden on customers themselves.
As explained by Business Today, none of the iPhone 12 series models are being produced locally in India, forcing Apple to import them and pay a 18% GST tax. Apple has confirmed this themselves that the new iPhones will be improved with a 22% duty. On the consumer side, for the base model iPhone 12 Pro which retails for Rs 1,19,900 (USD 1632.56), Rs 36,216.98 (493.13) of it is just purely for tax and duties.
Ignoring the tax and duties, the MRP (the maximum retail price that a product can be sold for) of the iPhone 12 is around $1075 in India, vs. the highest-end configuration in the US retailing for $949. For the higher end-models such as the iPhone 12 Pro Max, the MRP in India is roughly $1770 vs. the high-end model in the US costing $1,399.
These higher prices in India are attributed to multiple factors such as assembly, forex (foreign exchange), GST, and supply chain partners who determine the products retail price, says Tarun Pathak who serves as Counterpoint Research’s Associate Director. Additionally, Apple and other companies must consider currency rate fluctuations, meaning they must maintain a buffer for a currencies’ lowest level in the past certain amount of days.