Customs officials at Delhi’s Indira Gandhi International Airport recently seized 38 iPhone 16 Pro Max units smuggled into India in two separate incidents. These smuggling attempts reflect a growing trend driven by the significant price difference between iPhones sold in India and those available abroad.
Smuggling Attempts from Dubai and Hong Kong
In the first incident, customs officers intercepted a group of four passengers arriving from Dubai on October 1, who attempted to smuggle 12 iPhone 16 Pro Max devices by concealing them in tissue paper. On the same day, another traveler from Hong Kong tried to sneak 26 iPhones into the country by hiding them in a vanity bag.
Delhi Customs posted about the seizures on social media platform X, where they shared images of the confiscated iPhones. The post quickly gained attention, highlighting the lengths individuals are willing to go to avoid the hefty import taxes imposed on electronics in India.
The Price Gap Driving Smuggling
The iPhone 16 Pro Max, which launched last month, is significantly cheaper in international markets like Dubai and Hong Kong. In Dubai, the base model of the iPhone 16 Pro Max costs AED 5,099 (approximately ₹1,15,900), compared to ₹1,44,900 in India. This price gap, largely due to India’s high import taxes, makes smuggling an attractive option for those looking to save money on Apple’s latest offerings.
Apple’s Production in India
To address these pricing issues, Apple has increasingly focused on local production. By manufacturing select iPhone models within India, Apple reduces costs, avoiding import taxes on locally sold units. This year, Apple’s exports from India have surged, reaching $5 billion in the first five months of FY25—a 54% increase from the previous year. Despite these efforts, demand for newer models at lower prices continues to drive smuggling attempts.
Customs’ Ongoing Crackdown
As Apple products grow in popularity in India, customs officials are intensifying efforts to curb smuggling. By seizing these devices, they aim to discourage illegal imports and encourage consumers to purchase through authorized channels. Customs’ vigilance underscores the ongoing challenges posed by price disparities, as well as India’s complex import policies on high-end electronics.
