iPhone 16 Pro Max is being smuggled to beat India’s high prices

Officials at Delhi airport have reported that they seized a total of 38 iPhone 16 Pro Max units in two separate incidents on the same day.

First, a group of four passengers arriving from Dubai attempted to hide 12 iPhone 16 Pro Max units by wrapping them in tissue paper. Later that day, another passenger arriving from Hong Kong to the same airport attempted to smuggle 26 iPhone 16 Pro Max models in her vanity bag.

Had all of the smuggling been successful, the amount of tax the government would have lost out on would have been around $14,000. That’s because the cost difference between the iPhones in other countries versus the retail Indian price can be over $500 more than the US base price.

For comparison, a base iPhone 16 Pro Max sells for $1,199 in the US, while in India the base price translates to $1,724, or 144,900 rupee.

The price difference is chiefly because India places a high import tax on certain devices, such as iPhones. The aim is to encourage companies to manufacture devices within the country, which was originally one reason why Apple began making iPhones in India for local sale.

Apple is now increasingly manufacturing iPhones in the country, but the majority are for export and so are not subject to the tax. In November 2023, though, the Indian government began an investigation that could yet see Apple facing a $600 million levy related to its accounting practices over the local subsidiary buying iPhones for local resale.

All 38 iPhones were seized by customs officials. It’s not known whether the smugglers will be charged, nor how these 38 on the same day compare to previous levels of smuggling into the country.