Apple’s iPhone Duo Sets Record Prices in India
The recent launch of Apple’s inaugural foldable device, the iPhone Duo, has elevated the price of iPhones in India beyond the ₹4 lakh threshold for the first time.
In stark contrast, this innovative smartphone is priced at merely ₹1.90 lakh in the United States for its base model.
This alarming price disparity has prompted numerous Indian consumers to consider purchasing the device abroad.
However, a tax specialist cautions that the customs duties imposed at airports could substantially diminish any financial advantages gained through such international acquisitions.
Price Details of the iPhone Duo
Unveiled on September 9 during Apple’s “Surprise and Shine” event in Cupertino, California, the iPhone Duo is available in India at prices ranging from ₹2,99,900 to ₹4,49,900, contingent upon the chosen storage variant.
The premium 2TB edition has notably claimed the title of the most expensive iPhone ever marketed in the country.
- Base model price in the US: $1,999 (~₹1.91 lakh)
- Price in UAE starting at: AED 8,499 (~₹2.2 lakh)
- Price for 2TB version in UAE: AED 13,599
This significant price gap of over ₹1 lakh on the base model has sparked interest among potential buyers.
Yet, they may not fully benefit from the savings if opting to import the iPhone Duo back to India, as emphasized by tax expert CA Siddharth Surana.
Customs Considerations for Travelers
“The concept of acquiring an iPhone Duo abroad is appealing to many Indian millennials and tech enthusiasts. However, they must remain cognizant of the customs duties that apply,” Surana remarked.
According to CA Surana, the iPhone Duo may be classified as baggage and is eligible for duty exemption only up to ₹75,000.
Under the recently amended Baggage Rules of 2026, passengers arriving by air or sea can bring in goods valued up to ₹75,000 without incurring customs duties, a rise from the earlier limit of ₹50,000.
Notably, used personal items are exempt from these regulations, and individuals aged 18 and older are entitled to one duty-free laptop.
Therefore, those who are already using an iPhone Duo while traveling to India may escape customs inspections. In contrast, purchasing a brand new iPhone Duo could lead to scrutiny and duty assessments.
Understanding Customs Duties
It is imperative to grasp that importing the iPhone Duo from abroad is categorized as ‘baggage’ and is subject to customs duties. According to the revised Baggage Rules of 2026, items classified as baggage are exempt from duties up to ₹75,000.
If customs authorities consider your iPhone Duo as baggage, then duties will only apply to the value exceeding ₹75,000.
“For example, if the iPhone Duo costs ₹2,00,000, duties will be levied on the ₹1,25,000 exceeding the exemption limit,” Surana clarified.
Tax Implications on Savings
What Are the Tax Consequences?
Customs fees will include a Basic Customs Duty of 15%, a Surcharge of 10% on the BCD (amounting to 1.5%), and an 18% Goods and Services Tax (GST) on the total cost.
Consequently, effective tax rates could reach as high as 37.47%, leading to approximately ₹47,000 in additional taxes.
Nonetheless, a potential buyer’s situation may still prove financially favorable post-duties. A base-model iPhone Duo obtained in the United States for around ₹1.90 lakh would incur duties on approximately ₹1.15 lakh of excess valuation, equating to about ₹43,000 at the effective tax rate.
This results in a total cost of roughly ₹2.33 lakh, which remains significantly below the Indian retail price of ₹2,99,900. However, considerations such as airfare and other foreign taxes must be factored in as well.
It is also worth noting that the US price calculations exclude state sales tax of 5-10%, while some states impose no tax at all. In the UAE, listed prices already incorporate a 5% VAT, and international travelers may claim a VAT refund upon departure.
“Beyond Customs duties and GST, the exorbitant transportation costs also contribute to the inflated pricing of the iPhone Duo in India,” Surana observed.
Source link: Upstox.com.
