Apple iPhone Duo costs ₹3 lakh in India vs ₹1.9 lakh in US: Why the price gap?

The much-awaited Apple annual event took place earlier this week and surprised most users with the company’s first foldable iPhone, along with new Pro models and other products. While the new devices have garnered attention worldwide, Indian consumers are likely to look closely at another number: the price tag attached to the company’s latest offerings in India.

In India, Apple’s latest lineup comes with a significant price difference compared with its pricing in the US. The company’s first foldable iPhone, the iPhone Duo, starts at ₹2,99,900 in India, while the iPhone 18 Pro and iPhone 18 Pro Max start at ₹1,64,900 and ₹1,79,900, respectively. In the US, the three models start at $1,999, $1,199, and $1,299, respectively.

But the new product lineup is not the only thing that has caught the attention of Indian consumers. For those who typically wait for the prices of previous iPhone models to fall after a new launch, Apple’s decision to significantly increase the prices of older models, including the iPhone 16 and iPhone 17, has come as another surprise.

Why are Apple products more expensive in India?

The price gap between Apple's Duo in India and the US is approximately ₹1 lakh, prompting questions over what drives the higher price for Indian consumers. According to Tarun Pathak, Research Director, Mobile Devices and Ecosystems at Counterpoint Research, the significant price difference between the US and Indian markets is largely due to taxes. India’s 18 per cent GST, the currency impact of around five to six per cent, and import duties of approximately 17-18 per cent on products that are not manufactured locally contribute significantly to the higher price in India.

Pathak added, “India pricing is steep, and the difference is primarily because initial Duo sales will not be 'Made in India' for some time. Consequently, imported units attract full import duty, making them significantly more expensive, along with GST and the impact of a weaker rupee.”

Why has Apple increased the prices of older models?

Speaking with Mint, Pathak noted that the increase in prices of previous models is largely due to the price hike in memory chips, which has made it increasingly difficult for original equipment manufacturers (OEMs) to absorb the hit. He added that the memory crisis is likely to persist for two to three years, with device prices likely to rise. Additionally, Pathak expects offers to dry up.

The increase in iPhone models comes months after former Apple CEO Tim Cook indicated in June that rising component costs could eventually be reflected in consumer prices. In an interview with The Wall Street Journal, Cook said, "Unfortunately, price increases are unavoidable.” He added that Apple had been trying to protect customers from higher costs, but the situation had become unsustainable.

With prices rising across both the latest and older iPhone models, the higher cost could also change how some Indian consumers approach their next iPhone purchase.

Will Indians turn to overseas markets for cheaper iPhones?

According to CounterPoint Research, overseas purchases will pick up, with Pathak suggesting that he won't be surprised if the overseas purchase demand doubles on a year-on-year (Y-o-Y) basis.

Despite the price surge, CounterPoint believes that the iPhone base series will continue to drive volumes, and Apple will continue to grow in value terms, though volumes are likely to decline in low single digits YoY. For a lot of users, a ₹20,000-30,000 increase will not lead to a change in their purchase plans, at least for the Pro models. However, some may postpone their purchase, wait for offers, or find a way to order the device from overseas, Pathak said.

However, it remains to be seen whether the higher price point will prompt Indian consumers to forgo purchasing an iPhone or whether the tech giant will maintain strong demand in the country.