1/ A lot has been said about #iPhone prices in India and how it's almost double that in the US. But why is it so and where does the problem lie, Apple or Govt? The answer is a bit of both.

2/ @Apple is very very strict about its margins and rarely gives discounts on its own. The prices of #iPhone drops only when a newer model comes out. Retailer margin on #iPhones is a mere 2%. So Apple in uncompromising on price, especially on its latest models.

3/ Having said that, the government increased GST on smartphones from 12% to 18%. Additionally it increased custom and import duties as well. Even components such as the screen had increased duty when importing to India for assembling. This put further pressure on the price.

4/ Now what costs 1 lakh (on conversion including 10% sales tax) in the US is 1.40 lakhs in India. Remove GST and it is 1.18 lakhs. Remove the duties and it'll come to about 1.05 lakhs. Remove sales tax on US price, it is 0.89 lakhs. Keep margin for currency rate fluctuations.

5/ Ofcourse, we have to tax sales, but smartphones help add value in many other ways. @apple has to share some responsibility too. This report suggests that the iPhone 12 Mini will be manufactured in India. https://9to5mac.com/2020/10/16/iphone-12-mini-battery-new-models-assembled-in-brazil-and-india/

6/ Though manufactured here, @apple's prices don't seem to reflect the incentives and benefits they're getting through the PLI and other schemes. They're not cutting margins. But there was no condition on them to pass the benefits to the consumer, just investment and jobs.

7/ The loser in this is the govt and the consumer who can't make use of the price arbitrage in different countries. Those who can pay 1.4 lakhs can also procure it from the the US and save the diff. And this happens. A lot. Who loses revenue? The Government.

8/ By reducing the taxes on these a little, the government can actually earn a lot more by making up on volume as more people will be interested in buying from here only. Earlier Apple never gave Worldwide warranty on #iPhone, now they do. So what incentive to buy from India?

9/ This is something I'd request @nsitharaman to look into. If price reduction leads to increased demand and sales locally, it will benefit the country only. This is not a sin kind of tax, but one that adds incremental value to the economy through digital services and purchases.