Apple products have almost become synonymous with a lavish lifestyle. The exorbitant pricing of Apple products does not seem to be a deterrent to people who are obsessed with their products. In fact, the Apple fever runs so high that people wait in ridiculously long queues before the launch of the latest version of their devices.
But have you ever wondered, why Apple products are costlier in India as compared to the US?
Well, there are a few reasons because of which Apple mobiles cannot be sold for a low price. One of the primary reasons is that they are not manufactured in India. They are assembled here, however, most of their parts and accessories are still imported from the US. This, basically, means that the manufacturing costs for the phone and other Apple devices have become high.
Even though Apple launched its online store only recently since they involve third-party retailers for their distribution the costs of their devices is substantially increased.
The total cost of Apple mobiles also includes various taxes and customs duties levied by the government of India. When the Goods and Services Tax or the GST was increased from 12% to 18%, the overall cost of Apple mobiles saw an increase of 5% in the cost. The cost enhancement of net import duty also resulted in the total price hike of Apple mobiles.
The import duty on mobile phone chargers was also hiked from 15% to 20%. These additional hikes are borne by the customers who do not mind paying the price for their favorite Apple products.
Considered to be a premium brand, Apple provides state-of-the-art technology and features to its customers. They know their clientele is elite, hence they keep the Apple ecosystem secure and seamless for their users. But, for a user cost of an Apple iPhone also includes the profit margins of almost 500% for the company.
But, sky-high prices do not seem to demotivate the buyers. Apple enjoys huge popularity in the Indian markets.
So, is there a likelihood for Apple to reduce the cost of its products?
The good news is, Yes. It is possible as Apple is reportedly contemplating moving its manufacturing units to India from China. This could mean that the prices of products could come down. Also, their suppliers Foxconn and Wistron are planning for expansion in the country. This could help make Apple iPhone a bit more affordable for the buyers. However, presently cutting down the cost to bring Apple mobiles to a low price seems to be an uphill task for the company.
Are Apple products worth the hype and the price?
The answer to this question is very subjective. Even though Apple products remain mostly a luxury, some people value the ecosystem and the elite user experience that Apple products provide. The loyal customers find the ease of using several Apple devices simultaneously and seamlessly a priceless feature.
In conclusion, it all depends on the user. If you do not mind paying a heft price and value user experience over other things, Apple products are the right choice for you.