India raises import tax on electronic items makes Apple iPhone more expensive
“The craze for the iPhone will never take an end. It has been in hot demand not only in India but in other parts of the world.” On Friday, the Government of India has raised the import tax on various electronic items such as mobile phones, televisions, LED bulbs and so on. This increase in the tax somehow, move to hurt Apple. The results are it increased the prices of its mobile phones in the country, except iPhone SE which is assembled now in the country.
The imports will be taxed 10 percent to 15 percent in order to control supplies from other countries and to build up interest about developing phone inside. Due to this decision, iPhone has, on average, 3.5% increased pricing. Shifting of increased price is seen not only with the latest series with all the previous launched series of Apple iPhone (Apple iPhone 6 which will cost 30,780 INR instead of 29,000 INR)
Furthermore, Apple iPhone X (256 GB) increased by 3.9% previously cost Rs. 1,02,000 now costs 1,05,720 INR in India. The 64 GB Apple iPhone X will now cost Rs 92,430 instead of Rs 89,000.
Also, it is expected, other companies like Xiaomi and Samsung will increase their price soon. The government also raised the import tax on video cameras to 15 percent from 10 percent and doubled the one on television sets 20 percent.
According to Make in India program, it is a good decision to promote the domestic industry. Also, As Apple acquired 80 percent of its customer in India Tarun Pathak, an associate director at Counterpoint Research said: “Either this will lead to increase in iPhone prices or force Apple to start assembling more in India.”