Apple's iPhone prices pinch in India after govt hikes import tax

Soon after the Indian government raised the customs duty from 10 percent to 15 percent for electronics and mobile products, iPhone maker Apple raised prices across iPhone models in the country.

The move came after global tech giant firm failed to get exemptions on component imports from the Centre.

Now, iPhone X lovers will have to shell out Rs 92,430 for the 64GB variant, which was earlier available for Rs 89,000. The 256 GB variant will now cost Rs 1,05,720 from the earlier price of Rs 1,02,000.

Currently, Apple works with Taiwanese contract manufacturer Wistron Corp to assemble the iPhone SE in Bangalore, which started production last May.

Apple reportedly touched $2 billion sales in India recently.

According to the Registrar of Companies (Roc) filing, Apple India posted sales of Rs 11,619 crore ($1.8 billion) for the year ended March 2017, up from Rs 9,937 crore in the year-ago period (translating to 17% growth in a country)

In the last year ended March 2016, Apple India had reported a growth of 53%.

iPhone giant considers India as one of the most important markets globally. Especially after it had a tough year in China. It also launched a slew of initiatives in the country over the past two years, including production and manufacturing of iPhones.

Apple chief executive Tim Cook has also emphasized the importance of India to the company, with revenues from India more than doubling during the September quarter.

Objective behind hike in customs duty

According to a notification issued by the Government on Friday, customs duty on several electronic items including televisions, mobile phones, and microwaves has been increased to 15%, from 10% now. It will lead to make the import of these goods more expensive.

Experts in the industry said this will have twin objective, it will increase revenue as well as to encourage more manufacturing and value addition in India. This will give a boost to local manufacture, whose products would be about 20-25 percent cheaper than imports.

Veterans also predicted that more duty hikes in next year's budget to force manufacturing to shift to India.