Tim Cook during the launch event of iPhone 7 and iPhone 7 Plus announced the prices of both flagship phones. iPhone 7 was priced at $649, which, if you convert into Indian currency, comes to Rs 43,200; while iPhone 7 Plus was announced at $769 which is Rs 51,200. However, if you look at the table below, it says much more than figures.
Now Let's have a look at what other countries are paying for the same device:
Third Party Retailer
Since Apple has no manufacturing unit within the country, they cannot avail the FDI in single-brand retail. This leaves them with no option but to collaborate with Indian retail agencies. To maintain profit margins, Apple sells the device at a higher price.
iPhones are costly in India then any other country is due to custom duty, Central Government Taxes, State Government Taxes, Depreciation of Indian Rupee.
According to Zauba.com, accessories boxed with iPhone are taxed separately; last year, taxes in India were more than double of the custom duty paid for phones at 28.85%.
Manufacturing or assembling products in India can certainly help brands reduce the prices. Since Apple has no such benefit, it has to pay an import duty of 12.5% on every iPhone it sells in India
Apart from central taxes, Apple has to pay 12.5% Value Added Tax (VAT) to various states on total price of the phone
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