Ever since Foxconn has announced its plan to open iPhone manufacturing plant in India, consumers here have gone gaga over the dream of getting cheaper iPhones.

But this could be a distant dream for Indians as nothing of that sort happened recently. On the contrary, India is the most expensive place to buy iPhone 6s or iPhone 6s Plus, according to a report from CNET. This brings us to the question, why iPhones are costly in India? Or rather say, why iPhones are costly in India compared to other countries?

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Why iPhones are Costly in IndiaWhy iPhones Are Costly In India Than Other Countries

Custom Duty

We have tried our best to analyse the tax structure, custom duties and miscellaneous expenses which can result in high cost to Indian consumers. According to the data we analyzed from Zauba.com, total amount of duties on iPhone imports paid to government is 11.43%. This duty is calculated on Cost + Shipping and Handling charges.

Central Government Taxes

Another thing we noticed that, import of iPhone is not classified under same code. For example: chargers, headphones and other accessories fall under different codes, and thus, have different duty rates. Apart from this, once a complete iPhone has passed from custom by paying all the duties, there is VAT (Value Added Tax) in different states. On average, VAT rate is 12.5% on smart phones.

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State Government Taxes

If this is not enough, some states have Octroi and also Educational Cess. All these taxes might be the primary reason why there are different prices in all states across India. Ultimately, Indians pay comparatively higher prices for iPhones than rest of world.

We are not “Tax Expert”, but we have done some basic maths depending upon the data we received. So this information might be very close to reality but not completely accurate.

Depreciation of Indian Rupee

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This might be one of the primary reasons why iPhones are costlier in India compared to rest of the world. Indian rupee has experienced a serious depreciation against US dollar over few years. The cost itself is converted from USD to INR, and thus, lower value of currency makes iPhone comparatively costlier.

The humble 16GB iPhone 6s starts at Rs.62000/- and the most expensive unit of 128GB iPhone 6s Plus is available at Rs.92000/-. Now, if we convert to American, Australian and British currency, check the difference below.

iPhone 6s

iPhone 6s Plus


$955, AU$1,310, £620

$1,110, AU$1,525, £720


$1,110, AU$1,525, £720

$1,265, AU$1,740, £825


$1,265, AU$1,740, £825

$1,415, AU$1,950, £925

Comparing the top and bottom models, iPhone 6s 16GB model is available at $649 in America, AU$1,079 in Australia and £540 in the UK. This clearly indicates that Indian consumers are paying $306 more than Americans, AU$231 more than Australians and £80 more than the British.

To avoid this huge price gap, it is recommended that Indian government should spread red carpet to iPhone manufacturers, if any bureaucratic inefficiency hampers the procedure.

It is notable that OnePlus, another smartphone brand, is going to start its manufacturing in partnership with Foxconn in the state of Andhra Pradesh. Should Apple or India wait for an auspicious time now?

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Can Indian audience expect iPhone to be cheaper once Apple Opens its official store in India? Share your viewpoints in comments, on Facebook, Twitter and Google Plus.