iPhone fans in India might want to start looking at flights to Dubai.
Apple’s iPhones are one of the most sought-after smartphones in the market and they carry a hefty price tag. On top of that, Indian users have to pay almost 40 percent extra for an iPhone compared to the US.
Now, according to a report from India Today, the sky-high price of the iPhone 12 Pro in India actually makes it cheaper to book a return flight to Dubai and buy it there rather than locally.
The 128 GB iPhone 12 Pro in India costs Rs 1,19,000, or a whopping $1,620 USD. The same phone in Dubai, on the other hand, costs Rs 84,000, or $1,114 USD.
Of course, doing so probably violates Indian import laws. Most of the additional cost of the iPhone in India is tax, so users thinking of doing so should legally declare the phone and pay import duty.
Apple does not have a local manufacturing unit in India. They gave contracts for assembly (not manufacturing) of its iPhone 7 and iPhone SE smartphones to Foxconn and Wistron. Since they are assembled here, these devices are relatively cheaper. Components and PCBAs (printed circuit board assemblies) for these phones are still imported. Most of iPhone flagships are imported, and drives the cost up.
Also, Apple sells its smartphones and other products in India via its vast third-party retail network. Though it has recently introduced its official online store for India, even that it is dependent on third-party vendors for distribution. These vendors, distributors, transport agents and other middlemen take a hefty cut.