Budget 2020 effect: iPhones get costly in India

Tech firm, Apple has hiked prices of some of its iPhone models in India. The price hike is done due to the increase in basic customs duty (BCD) rate in Budget 2020 and withdrawal of earlier exemption from BCD under the Social Welfare Surcharge.

The prices of iPhone 7 and iPhone XR remain unchanged. The price of iPhone 11 Pro Max 64GB will now be priced at Rs 1,11,200/-, the 256GB version will cost Rs 1,25,200/- and the 512GB version will cost Rs 143,000/- The same device was priced at Rs 1,09,900/-

Even the price of the iPhone 8 has gone up. The iPhone 8+ 64GB model is now available for Rs 50,600. The 128GB version of the iPhone 8+ now costs Rs 45,500/-.

India’s Finance Minister, Nirmala Sitharaman had said in her budget speech, “Under ‘Make in India’ initiative, well laid out custom duty rates were pre-announced for items like mobile phones, electric vehicles, and their components. This has ensured a gradual increase in domestic value addition capacity in India. Custom duty rates are being revised on electric vehicles, and parts of mobiles as part of such carefully conceived Phased Manufacturing Plans.”

Apple has absorbed the price hike for iPhone 11, which is the most successful model for Apple in India. The sales figures for iPhone 11 and iPhone XR have helped Apple achieve its best quarter in the Indian market. At a lower price point, the impact of the price hike would be more than at higher tabs like iPhone 11 Pro Max.

The iPhone maker usually does not hike prices, it is only in cases of regulatory or tax changes. In India, pricing incorporates a margin for currency fluctuations.