Why Apple product are so costly in India

Before I write anything, I must let you know all I am a great fan of Apple products specially Iphone and Ipads.

So you must be aware by newspaper and news channel that Iphone 5 is launched strongly on 2nd November 2012. The most wondering thing for me is its price.In India Iphone price is kept @ 45500 INR.Now the question Iphone lovers are asking is why?

In US same Iphone 5 cost about approx INR 37000 (Consider dollar conversion rates and taxes).The concerning thing is why Apple is not considering India as good and important market place for their products.It has various reasons like in India people mostly loves cheaper handsets and don’t like to spend more on handsets.Apple products always cost more compare to their competitors.

Also Apple hates piracy and almost for everything on Apple you have to pay some money.Indians loves piracy and crack version of software.For ex- If you will buy original version of Windows,office or ZoneAlarm anti-ransomware in India, people may considered you stupid!

I tried to dig little bit more in it to find why it cost more?Is it because of import duty and taxes.Lets see how price affects after adding adding  taxes?

I took help from a site http://www.dutycalculator.com

As you can see even after calculating all taxes and import duty (Apple will charge it from customer) its cost reach around 39000 INR.How come it charge 45500 INR from India customer.Even if we will add 1000 extra as more taxes it will reach 40000.The real reason is Apple never have any sale office in India, so they use third party resellers in India.These resellers paid huge amount of money to get rights to sell Apple products, Which in turn goes to customer and they have to pay more.

Apple knows that in India they never get a more amount of buyers, so whoever will buy  they buy at higher price and Apple take a major portion of this amount.I suggest before launching their product in India, Apple must justify this price.

How Apple uses India?

Apple knows that India consumer loves cheaper product, even if it is outdated.So what they do.They reduces their older version of products.For example Iphone 3gs costs around 19000 INR, where in US they already stopped selling this and stopped its support.India consumers still buys it.So the conclusion India is good place for them to dumped their older product.The phone which cannot be sold anywhere as it is old and outdated, It still works in India and help Apple to make some money out of it.

The Road ahead-

This habit is common in both Google and Apple.Both companies always delay launching of their products in India for almost 3-6 months(most suitably I would say they ignore India)and when they do launch it cost more.This question can be put forward even by Government that before you sell your product in India, you must justify the high price.

The fact is Government is happy as they are getting taxes and resellers are also getting good amount of commission.The only part which is getting most affected is the end user.

We as a user of Apple product should and must ask this to question to Apple (or Google) before paying money to them.Why we should accept any price they tell us?This is time to ask question.Remember as a consumer you are paying money so you have all right to know why they charge more and what taxes they include in the price.I have already send a question to reseller and Apple regarding this.

Please comment to this post if you also feel US companies ignore India and charge more from us.