14 DAY TRIAL // The iPhone isn’t by any means an affordable device, and Apple knows this very well, but as far as CEO Tim Cook is concerned, the final price of the handset is only increased by duties and taxes.
During his tour in India, Cook sat down for a talk with NDTV, detailing the company’s strategy for the country, but also the problem of pricing that makes the iPhone rather expensive for Indian buyers.
The CEO went on to explain that Apple’s profits in India are actually smaller per sold iPhone than in the United States and promised to tackle the issue of pricing in specific markets in the coming months and years.
“Our profitability in India is materially less, but still I recognize the prices are high. We want to do things that lower that over time to the degree that we can, so we’re looking into a number of things,” he said.
Tim Cook added that Apple is indeed trying to make the iPhone a little bit more affordable, but it’s important to note that this is only aimed at some specific markets and only concerns local duties and taxes, so don’t expect the device to be significantly cheaper. But there’s still room for improvement here, Tim Cook said.
No build quality compromise
And yet, making the iPhone cheaper won’t impact build quality, and this is mostly because the cuts won’t take place in the production phase, but only when it comes to the taxes the company has to pay to local authorities. Most likely, Apple is looking into setting local factories or other facilities that could help eliminate import taxes, thus contributing to lower final price for the iPhone.
“We’re about making the best. That means we’re not going to play in some of these other price points. We would never make a product that we’re not proud of. I don’t want to be in those markets, I don’t have a desire to be in those.”
But although Tim Cook blames taxes and duties, it’s still no secret that Apple makes a huge profit for each iPhone it sells. The estimated iPhone 6s build cost is said to be $211.5 while the 6s Plus costs only $236 to make. The most affordable iPhone 6s can be yours for $649 in the United States while the Plus model is a little bit more expensive and sells for $749.
