Apple has effected a price hike on some of its models to adjust for the increase in basic customs duty (BCD) rate in Budget 2020 and withdrawal of earlier exemption from BCD under the Social Welfare Surcharge. While the iPhone 7 and iPhone XR are not affected by the price rise as these models are made in India, the iPhone 11 prices are unchanged. The iPhone 11 Pro Max 64 GB will now be priced Rs 1,11,200, while the 256 GB model will be at Rs 1,25,200 and the 512 GB version at Rs 1,43,200. Earlier, the iPhone 11 Pro Max price started at Rs 1,09,900.
The iPhone 11 Pro 64 GB version will be priced Rs 1,01,200, 256 GB at Rs 1,15,200 and iPhone 11 Pro 512 GB at Rs 1,33,200. The iPhone 11 Pro earlier used to start at Rs 99,900.
The iPhone 11 Pro Max 64 GB will now be priced Rs 1,11,200. For both these phones, the hike is about Rs 1,300.
The iPhone 8 prices also go up. The iPhone 8+ 64GB model is now at Rs 50,600, 128 GB at Rs 55,600, up about Rs 700 from the earlier starting price of Rs 49,900. The iPhone 8 64 GB will cost Rs 40,500 and 128 GB at Rs 45,500. Interestingly, Apple has absorbed the hike for the iPhone 11 which has been a very popular model for the company in India. In fact, the iPhone 11 and iPhone XR numbers just helped the company achieve its best quarter in the market.
At lower price points, the impact of a price hike would be more than at higher tabs like with the iPhone 11 Pro Max. Apple has absorbed the hike for the iPhone 11 which has been a very popular model for the company in India.
In her Budget speech, Finance Minister Nirmala Sitharaman had said: “Under Make in India initiative, well laid out customs 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… Customs duty rates are being revised on electric vehicles, and parts of mobiles as part of such carefully conceived Phased Manufacturing Plans.”
Apple usually hikes prices only because of regulatory or tax changes. In countries like India, its pricing anyway incorporates a margin for currency fluctuations. Incidentally, the Rupee is now not doing that well against the Dollar.