iPhone: The craze for the iPhone in India is no secret. The iPhone has earned a premium reputation for its design, camera, and performance.

The craze for the iPhone in India is no secret. The iPhone has earned a premium reputation for its design, camera, and performance. However, when it comes to price, Indian consumers are left red-faced. Surprisingly, even though the iPhone is now assembled in India, its price remains significantly higher than in countries like the US or Dubai.

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A look at the prices shows a clear difference. The 256GB storage variant of the iPhone 17 Pro costs around ₹134,900 in India. Meanwhile, the same phone is available in Dubai for around ₹115,000, and in the US, it costs around ₹99,000. This means Indian customers have to spend thousands of rupees more for the same phone. The question is, why is this so?

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The biggest reason for this is India's tax system. Even though iPhones are now assembled in India, that doesn't mean the phone is completely manufactured here. Many key parts of the iPhone, such as the OLED display, processor chip, camera module, and other components, are imported. These parts incur import duties, which increase the overall cost of manufacturing the phone.

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Additionally, India imposes an 18% GST on smartphones. This tax further increases the final price of the phone. For example, if the base price of an iPhone is ₹100,000, then after adding GST alone, its price becomes approximately ₹1.18 lakh. When import duties and other taxes are added, the price rises even higher.

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Another important point is that there's a difference between assembly and manufacturing. In India, iPhones are assembled in factories run by companies like Tata Electronics, Foxconn, and Pegatron. This certainly provides benefits, but unless most of the components are manufactured domestically, significant cost reductions are unlikely. This is why iPhones don't become cheaper despite being assembled in India.

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Overall, the biggest reason for the iPhone's high price in India isn't the brand, but rather the tax structure and its dependence on imports. Until local component production increases and tax burdens are reduced, Indian customers will continue to pay higher prices for the iPhone.