The iPhone X was the talk of the town when it was launched in 2017, featuring the A11 bionic processor that could compute 600 billion instruction per second and the face id system, that revolutionized the security system. Now we’re accustomed to having a heftier price tag in order to obtain such a masterpiece, but the iPhone X brought with it a wave of Extravagantly priced smartphones. Pricing over 1 Lakh rupees per piece, it was the butt of many jokes and memes alike , even garnering a piece from India Today , dated Sept 13 ,2017 quoting , ” iPhone X is so expensive in India, that you can fly to Hong Kong, buy it, travel back, and still have money left to spare!” , which if you think of, is funny, but also worrying. Following the trend of its predecessor, the iPhone XS and Xs Max, have the same staggering price tag, but with very little to offer. Priced at $999(USD) the iPhone XS costs a staggering 99,900 rupees in the Indian market! Any person who is aware of the exchange rates ($1=75.52 Rs) will catch on to the fact that on direct conversion, the prices should be around Rs.72,442, which enumerates into a difference by almost 30 %.
The reason for said absurd prices is the Government. Like the start of every bad joke, the Govt has put down some policies that result in such high prices!
Apple has been selling its product under authorized retailers, rather than through its own stores:
The Indian policy dictates that for Apple to have its own store in India, must obtain AT LEAST 30% of its component locally! Which at the moment is not that case . Apple sources its component from nearly 28 different countries, making it nearly impossible for it to match up to the Indian Code. And as you have it, Apple is not the only company to suffer at the hands of these dictates. H&M and Xiaomi have even gone as far to tell, that due to these stringent rules, it can’t bring a larger assortment of international goods into India! (i guess we do have to blame the Government !)
But the Govt is good at making pseudo guidelines. It has very loosely added the clause that in case that companies use “cutting edge” or ” state of the art ” tech, then the 30% rule can be waived. But alas ! the standards of the Indian Govt are so high that no has been granted this exemption!
No. We are not joking. Even giants like Apple are/were affected by the induction of GST, though mostly in a beneficial manner. The Value added tax ranged from 5%-14 %, was replaced with an equally steep GST of 12 %. Not to mention the cherry on top this massacre, the customs duty was raised from 10% to 15 %. Though the Govt did say that, the prices were expected to go down IF AND ONLY IF, the companies were to set up assembly units in India. Apart from the one time in July 2017, where SE models were assembled a little off Bengaluru, Apple suppliers such as Foxconn, have tried to set up plants in India, but to no avail.
The aforementioned reasons have resulted in the prices of smartphones Soaring well beyond the one Lakh rupees mark, making the iPhone one of the costliest base models there are.