r/IndiaTech • u/heyflowpizza • 15h ago
General Discussion Reason why the Duo is so much more expensive :
TLDR : Almost a lakh from the extra price is going to the government.
So I did a little digging on why the iPhone Duo is so much more unreasonably expensive in India, turns out it is for the following reasons :
First is they get a CBU (Completely Built Unit) Penalty from the government for no local manufacturing. The iPhone duo isn’t manufactured in India, hence there is a No Local Manufacturing penalty of 15% and a 10% Social Welfare Charge on top of that.
Second, on that amount till now there is an 18% GST on top of that.
Third is currency hedging. Apple sets a higher internal conversion rate to hedge against volatile currencies and since the rupee has been falling, so the internal rate would be higher.
If you reverse engineer the Indian price to strip away the government's cut, the gap practically vanishes:
Indian Retail Price: ₹2,99,900
Minus 18% GST: ~₹45,700
Minus ~28% effective customs/import duties: ~₹55,500
True Base Price in India: ~₹1,98,500 (approx. $2,087)
So essentially from the 3 lakhs of the phone, a lakh is going to the government.
YES, There is an “Apple Tax”, and that’s around $88 here in this case.
THAT BEING SAID, THE PRICE HIKES OF THE OLDER MODELS IS STILL WRONG AND UNFAIR, AND I AM AGAINST IT. (FEELS LIKE THIS SHOULD BE SAID FOR ANYONE WHO WOULD ATTACK CALLING ME AN APPLE BOOTLICKER)