Apple
fans in India are having to shell out a lot more than their
counterparts in the US to get their hands on the latest iPhone 15
models, which were launched last month.
In India, the iPhone 15 -
which costs $799 in the US - is selling for Rs 79,900 (around $965),
while the $999 iPhone 15 Pro is selling at Rs 1,34,900 ($1,628) and the
$1,199 iPhone 15 Pro Max costs Rs 1,59,900 ($1,930) — which shows that
the price difference in some models is more than 50 percent.
In the latest line-up, the iPhone 15 and iPhone 15 Plus models are being locally assembled. But even if smartphones are assembled
in India, many components are imported, especially from China. These
components also attract duties, which impact the phone’s price.
While
iPhones are ‘made’ in India, it is important to note that their
components are subject to import duties. Similarly, the iPhone 15 Pro
models (which are imported) face even steeper tariffs, with a 20 percent
customs duty and an additional 2 percent cess.
A 2022
comparative study of India’s import tariffs in the electronics sector,
by the Indian Cellular and Electronics Association (ICEA), released in
July this year, noted that India’s electronics manufacturing industry,
which included mobile phones, was marred by high input tariffs,
resulting in increased cost of production, reduced scale of operations,
and lower ability to compete in both the global and the domestic
markets.
Anonymous
5 comments:
Haha killed the goose that laid the golden eggs but short term money too hard to resist
https://youtu.be/9oTRnz7Jw3c?si=XJgvbZq5cuZ0bosd
This is just one of the many videos of the World's rejections of IPHONEs as manufactured on India.
Wow poor workmanship and many defects.
They are kicking their own arses and wanting to go back to China as Sales pummelled.
Itchy backsides
https://youtu.be/GDUqZ8kKpYQ?si=g8FDZKIPTjOoPaGq
Even their own WION reporting on this.
How could iPhone 15 made in India be cheaper than those made in China, when most of the components have to be sent over from China and subject to high tariffs? That is why China is not too worried about Apple moving part of its production to India. What China cannot benefit from making more iPhones in China, China can make even more just exporting those components to India. Does the trade war with the USA provide any clues?
India does not have the supply chains needed to give Apple an independent existence in India without depending on China. With the kind of investment environment existing, which Chinese supply chain would want to set up base in India and risk getting taken over when successful? They might as well remain in China, do their business in safety and just export what they produce to India. India cannot ban import of those components as that will kill the Apple manufacturing business in India. India can keep increasing tariffs, but that will be paid by Indian customers, like the USA trade war tariffs on Chinese imports.
It has been reported that 50% of iPhones made or assembled in India were found to be faulty in some way or another, and complaints have been made by the EU against iPhones made in India, so much so that Tim Cook had been reported to have said that iPhones made in India will only be sold in India. There were however loose talk of Apple intending to unload those 'below standard' made in India iPhones onto the Chinese market, which the Chinese are not going to take lying down. Chinese customers are asking where those iPhones come from first before buying them.
Perhaps Apple is trying to pull a fast one on customers by making those iPhones in India, sent them to China with some hanky panky done to them, and claimed they were made in China. If that can be done with Russian oil, why not with others. Question is how to price those expensive India iPhones cheap enough to compete with Chinese made iPhones? Even if they sell at a loss, which is not possible, knowing that Apple makes so much on each iPhone in China, doing this is going to spoil the reputation of Chinese iPhone makers. China has to be extremely wary of this.
Right now, Apple is facing lots of problems with its iPhone 15, said to be tinkering over overheating complaints. Added to that, Apple is also having problems with the high electromagnetic radiation with its iPhone 12 which are above safety levels under EU regulations. Fancy bring this up after so many years of usage! But rest assured Governments will play it down when the Emperor's Edit is read to them. Nothing to worry about and it is very safe.
Now, there is further competition in the Chinese market, with Huawei rising from the ashes, plus the clampdown over iPhone usage among Chinese Government circles, coupled with the problems in the Apple production facilities in India. All these will affect the bottom line of Apple going forward.
Even if Apple have to crawl back to China, it will do that quietly and without fanfare, in contrast to when they were shifting out. Then it was touted that it was a death warrant for China, according to those Indian news sites.
But the dominations Apple built up over the decades in China is not coming back.
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