The Elevated Pricing of iPhone 15 Pro Models in India Explained
The launch of Apple’s iPhone 15 series brought significant improvements, including the adoption of the USB Type-C port and the introduction of the A17 Pro chip. However, Indian users have expressed concerns about the notably higher prices of the iPhone 15 Pro models in India compared to the US, especially given that Apple manufactures some of its devices locally.
| Region | US | Dubai (UAE) | India |
| iPhone 15 128GB | Rs 72,890 | Rs 76,745 (+5%) | Rs 79,990 (+10%) |
| iPhone 15 Plus 128GB | Rs 82,012 | Rs 85,780 (+5%) | Rs 89,990 (+10%) |
To provide context, regular iPhone models exhibit a 10% price difference in India compared to the US, while the premium for the Pro models is a staggering 50%. This discrepancy has raised questions about why the Pro models are considerably costlier in India despite being manufactured in the country.
Apple’s “Make-in-India” Program: Regular vs. Pro Models
Apple has been actively promoting its “Make-in-India” program, with local iPhone production dating back to 2017. India currently contributes 7% of the global iPhone production. However, a key distinction lies in the types of models manufactured in India. While regular iPhone models, such as the iPhone 15 and iPhone 15 Plus, are produced in India, the Pro models are exclusively manufactured in China. As a result, Apple imports the iPhone 15 Pro and iPhone 15 Pro Max from China to India.
| Region | US | Dubai (UAE) | India |
| iPhone 15 Pro 256GB | Rs 1,00,263 | Rs 1,06,105 (+5%) | Rs 1,44,990 (+45%) |
| iPhone 15 Pro Max 256GB | Rs 109,375 | Rs 1,15,125 (+5%) | Rs 1,59,990 (+45%) |
The Indian Government imposes a 20% import duty on fully manufactured phones, automatically raising the prices of imported iPhone Pro models. In addition to the import duty, iPhones are subject to an 18% Goods and Services Tax (GST), which is included in the Maximum Retail Price (MRP) of the phone. Consequently, the Pro Model iPhones are already 38% more expensive in India than their global counterparts.
Addressing Currency Exchange Rates
Apple also faces the challenge of dealing with the depreciation of the Indian Rupee against the US Dollar. To mitigate currency fluctuations, Apple maintains a buffer margin on its product pricing in India, further contributing to the elevated costs.
Benefits of Manufacturing in India
Notably, the regular iPhone models manufactured in India benefit from lower taxes. Apple incurs only a 2.5% import duty on components, saving 17.5% on taxes through local manufacturing. This helps maintain pricing parity between the Indian and US markets for the iPhone 15 and iPhone 15 Plus. If not for local manufacturing, even these models could have cost up to 45% more in India compared to the US.
The Role of Heavy Taxes
India’s heavy import duties are aimed at encouraging businesses to engage in local manufacturing. While this strategy has worked well for Apple’s regular iPhone models, the Pro models, which are not currently manufactured in India, face the full brunt of import duties and taxes.
Apple’s Search for Alternatives
Given the recent supply chain disruptions and worker strikes in China, Apple has been exploring alternatives for iPhone manufacturing. There is a possibility that Apple may consider producing the Pro iPhone models in India in the future to establish a secondary source of production. If realized, this move could potentially reduce the price difference between the Pro models in India and other markets.
