On 7th September, Apple launched their most awaited iPhone 7 and 7 plus and the Apple fanboys and other people in India who wants to buy iPhone went crazy about it but, the pricing of the new iPhones spoiled the dreams of people in India as Apple announces the prices of iPhones in India.
The average cost of making an iPhone 6 is 250$. So, we can assume that the cost for making iPhone 7 will be under 300$ so, apple makes 300$ to 700$ profit behind every iPhone. But, have you ever wondered even, after making this much profit why iPhone costs more than US in India?.
Let's breakdown the math behind it.The 32 GB variant of iPhone 7 costs 649$ in US which is equal to around 42,834₹ (price may vary)but, the same model will costs 60,000₹ in India. That's because of the duties and taxes imposed.
The taxes and duties are as follows.
- 42,834₹ (649$)+ countervailing duty 12.5%= 48,188
- 48,188₹ + distributor margin + retailer margin + taxes= 60,000₹.
Can iPhone be cheaper than 60,000₹ in India?. Hell yeah!! Apple will just need to reduce it's profit margin from 130% but, will apple do it? Probably not.
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