On Friday Patently Apple posted a report titled "India Increases Taxes on Foreign Smartphones like the iPhone to give Local OEMs a Clear Market Advantage." Today the new Indian taxes kicked in and Apple has increased their prices by 3.5% across the board as noted in the chart below.

The tax hike doesn't apply to the iPhone SE which is made in India and is the one that most competitive. On the higher end, those that buy on the basis of brand won't be deterred in the slightly higher iPhone prices.

Apple confirmed the change in pricing, adding that new prices will be effective from Monday, and have been changed on its website as well.

Without the concessions that Apple has asked the Indian Government for, they're likely to continue to focus on a single iPhone aimed at the more price conscious. For the foreseeable future, India will remain an Android-centric market until their middle class becomes a more meaningful segment of their society.

It was reported in June that "The US has raised issues with localization barriers in the energy and information technology sectors, high tariffs and duties in telecom and medical device products and intellectual property policies.

The National Association of Manufacturers, the largest such grouping in the US, has said India has excessively high tariffs on imports of a range of products.

Today's forced tax will be seen by the U.S. as yet another move toward a trade war.

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