Why iPhone 7 is Expensive in India:
Three days back Apple launch the new iPhone 7. It has got some premium black finish and minor design changes at the back. And yeah we got force touch in the home button. So the home button pretty more sensitive this time. But this time Apple made iPhone 7 available for the price of 649$ which is roughly around Rs-45,000. But iPhone 7 will launch in India at a different price tag which is RS-60,000 for the base model which is for 32GB model. Here we will tell you why iPhone 7 is expensive in India.
iPhone 7 Water Resistant does not cover under Warranty
This time it has some new features like the iPhone 7 or 7plus is totally waterproof. And let me tell you one thing and make it clear. If you buy an iPhone 7 or 7plus the Apple does not cover water damage under warranty.So this was the important thing to share with you people as apple doesn’t over water damage in warranty. This was worst part ever done by them.
How cheap is iPhone 7 for Apple
Now let me tell you why iPhone 7 is expensive in India. On an average the manufacturing cost of iPhone 6 for Apple is $200-250. So here basically iPhone 7 has some more features compared to iPhone 6. So this tell it might be a bit expensive. So let’s assume it takes Apple around $300 to manufacture an iPhone 7.
The Calculation Part:
So this shows Apple makes $300-700 per iPhone sold. This is what the profit Apple gets per iPhone sold.
Now let’s convert the currency Dollars to INR. If we convert 649$ to INR, then 659*66=Rs-43,423. So the iPhone 7 costs Rs-43,423 without taxes.
Now let’s add taxes. If we add countervailing duty. And it around 12.5%. So let’s add the countervailing duty. Rs-43,423 + 12.5% = Rs-48,850.
Now at last 48,850 + Distributor Margin +Retailer Margin +taxes = Rs-60,000. Now this is the reason why iPhone 7 is expensive in India.
Can iPhone 7 be cheaper?
Apple just need to decrease its profit margin from 130% per iPhone. Well the question here that rise is can the Apple do?? Well our answer is Damn Yeah!!! Here rises another question, Will Apple do this to and decrease their Profit Margin. Damn No!!
Today India is ranked at no-2 in Phone market around the world. While apple has 2.5% share in the Indian market. Well, with such expensive phone it is not going to increase it anytime soon.
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