Why Have iPhone 17 Series Prices Increased In India Despite Local Manufacturing?

Apple’s iPhone 17 series, unveiled at its latest keynote, has seen a modest price increase in India, sparking questions about why pricess= have risen despite local manufacturing. FinTech influencer Ravi Sutanjani took to social media to highlight that most of the countries, including Hong Kong, US, Vietnam, and Japan have a lower price tag than the Indian pricing. According to Faisal Kawoosa, chief analyst at Techarc, the answer lies in currency fluctuations and the persistent reliance on imported components.

Kawoosa explains that while Apple assembles iPhones in India, 'components contributing to over 85-90 percent of smartphone cost have to be imported.' A 5 percent depreciation of the Indian rupee against the US dollar in 2024 has driven up input costs, impacting the final price. Despite this, Apple has managed to limit the iPhone 17’s starting price to a 3 percent increase over last year's launch, which Kawoosa deems reasonable given the economic context. “Apple has done reasonably by just increasing it 3 percent over last year’s launch price,” he notes, highlighting the company's awareness of global economic uncertainties and trade challenges.

The iPhone 17's starting price in India, initially predicted by Techarc to be around Rs. 86,000 based on historical pricing trends and rupee-dollar dynamics, reflects Apple’s strategy to balance affordability with premium offerings. Kawoosa points out that Apple continues to make entry into its ecosystem accessible through devices like the iPhone 17, SE Watch, and AirPods, while introducing premium-priced options like the iPhone Air for users seeking a novel, slimmer form factor. "For existing users looking for novelty, they can go for iPhone Air, for which Apple has put a premium price tag," he adds.

Despite the lack of groundbreaking innovation in the iPhone 17 series, Kawoosa notes that Apple's focus on experiential connection was evident in the keynote, with speakers presenting from Apple Stores to reinforce the brand’s emphasis on customer engagement.