Tim Cook explains why iPhone is so costly in India

Tim Cook explains why iPhone is so costly in India

In a recent interview, Tim Cook explains why iPhone is so costly in India.  Apple Chief gave an exclusive interview to NDTV‘s Vikram Chandra.

According to a report by Deutsche Bank, India was among the most expensive places in the world to buy an iPhone. Average prices are 31 percent higher than the U.S.

You’ve got an iPhone here which is more expensive than it is in the U.S… With less functionality than it would have in the U.S… In a country where purchasing power is a fraction of what it is in the U.S.,” Chandra said.

The duties and the taxes and the compounding of those take the price and it makes it high. Our profitability is less in India, it’s considerably less.  But still I recognize that prices are high.

“We want to do things that lower that over time, to the degree that we can,” he said. “I want the consumer in India to be able to buy at a price that looks like the U.S. price.”

In a response to a question “how Apple would be investing in its Indian presence”? What we see here is talent. “That means getting the development community moving on iOS. We are also using a lot of skills in India for maps. The maps facility will be several hundred million dollars’ worth of work.” Tim responded to the question.

But don’t expect an iPhone with a special and localized version at lower cost or with highly customized services.

“We want to bring Apple pay to India. We want to bring every service that we do to India – everyone,” he said. “And if there’s something unique that’s needed, we also want to do that.”

But not more than that: “I don’t believe personally in trying to be something you’re not. We are what we are. We’re a California company.”

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