In Shahrivar (August-September) of this year, the Minister of Industry, Mines, and Trade commented during a Tehran Chamber of Commerce meeting about the current status of iPhone imports and registration, asserting that no documentation exists on this matter. He mentioned that relevant departments in the Ministry of Communications and the Ministry of Industry, Mines, and Trade needed to convene but had not yet reached any resolutions. According to Atabak, requests were made to the head of the Trade Organization to promptly address some restrictions on imports and exports, particularly focusing on tariffs that lack economic justification. He argued that revising trade tariffs would swiftly influence the market.

During the same period, a campaign was launched to lift the ban on iPhone imports and establish registration regulations, which received a favorable response from the government on Aban 9 (October 31, 2024).

iPhone Registration and the 96% Tariff Shock

Sattar Hashemi, the Minister of Communications and Information Technology, announced on Aban 9, 1403 (October 31, 2024) via his personal account on X (formerly Twitter):
“The issue of iPhone registration has been resolved thanks to the government’s wisdom, the president’s support, and active follow-up by the Ministry of Communications. I believe that with expert work and consensus, without sensationalism and populism, other virtual space issues and public demands can also be addressed.”

This raised questions about whether registering smuggled iPhones that had entered the country illegally—specifically models 14 and above—would actually benefit the public. In Iran, where iPhones are considered luxury items, this decision provoked criticism from opponents of the Rouhani administration. They deemed the iPhone registration initiative a misplaced priority implemented for unclear reasons.

The government initially announced a staggering 96% tariff for iPhone imports, which many experts interpreted as a means to fill the state treasury. Applying this tariff would have generated an estimated revenue of over 1 quadrillion rials (1 billion USD). However, within weeks, customs revised the import duties for iPhones. For devices priced above $600, the commercial route tariff was set at 15%, with other methods subject to 30%. Phones costing $600 or less were taxed at 5% commercially and 6% through other routes.

Jalal Rashidi Kouhi, a former parliament member, criticized the initial ban on iPhone imports. He highlighted that the ban, passed without parliamentary approval, aimed to curb currency outflows on non-essential goods, discourage luxury lifestyles, and address security concerns. However, none of these goals were realized, leading instead to illegal and unregulated imports. This, he argued, left the government without official data on currency outflows. Kouhi further claimed that a small group benefited from the situation, using national security arguments to maintain the ban and undermine parliamentary authority.

When tariffs were clarified, iPhones priced above $600 were taxed at 30%. Consequently, the post-registration price for iPhone 16 models with a 15% tariff ranged between 59 million and 89 million tomans, while the Pro Max version cost between 89 million and 118 million tomans. With a 30% tariff, prices ranged from 63 million to 86 million tomans for the base model and 94 million to 126 million tomans for the Pro Max. In dollar terms, this meant iPhone 16 models cost between $779 and $1,599 in Iran, where fluctuating exchange rates further affected pricing.

Given the minimum wage in Iran, purchasing an iPhone 16 with a 15% tariff requires six months of work. In contrast, an American worker can afford the same phone with six days of earnings. Thus, it appears that only affluent Iranians, the government’s presumed target market for iPhone imports, can afford such devices.

The decision to lift the ban and register iPhones coincided with the government’s budget submission to parliament, signaling potential planning to capitalize on iPhone import revenues. The government projected earning 250 trillion rials from this initiative. However, the Research Center of the Iranian Parliament noted in its budget report for the next fiscal year that no corresponding provision was explicitly outlined, despite such revenues being included in budget tables. The report recommended clear guidelines for related regulations and highlighted the Ministry of Industry, Mines, and Trade’s obligation to advance strategic industrial plans under the Seventh Development Plan.

250 Trillion Rials Revenue or Currency Drain?

In the second half of 1401 (2022-2023), $900 million was allocated for iPhone 13 imports. That same year, estimates suggested that registering iPhone 14 models could lead to a currency drain exceeding $1 billion. This was during a period when the dollar exchange rate in Iran had not surpassed 70,000 tomans.

Official statistics indicate that in 1400 (2021-2022), Iran imported $1.4 billion worth of iPhones out of $4.4 billion in total phone imports. Of this, $1 billion was imported in the second half of the year, with $850 million dedicated to iPhone 13 models alone. Notably, only $50 million of this figure accounted for imports via personal travel, while the remainder entered through official channels.

Imports of luxury goods like iPhones—whether via smuggling, travel, or exceptions—contribute to currency outflows and increase demand in the open market, thereby adversely impacting currency stability. Experts have repeatedly warned against viewing unofficial imports as harmless simply because the Central Bank does not officially allocate resources for them.

Given these factors, it appears unlikely that iPhone imports in the coming year will match the scale of 1401 (2022-2023). This casts doubt on the government’s anticipated revenue of 250 trillion rials from iPhone imports.

Iranian Retailers Welcome iPhone Registration

Amidst the complexities surrounding iPhone imports, one surprising development is the enthusiasm among Iranian mobile phone retailers. They believe increased import tariffs on iPhones will benefit domestic mobile phone production. According to budgetary regulations, customs revenue from phones priced above $600 is allocated to support the domestic microelectronics and mobile phone industries.

References:

1. “I currently have no documentation on iPhone imports,” Shabakeh Shargh website, Shahrivar 27, 1403 (September 18, 2024).
2. “Ambiguities in iPhone imports: What happens to iPhone 14 and 15 consumers?” ISNA, Aban 19, 1403 (November 10, 2024).
3. “Campaign launched to lift the ban on iPhone imports; efforts to address demands,” Peyvast Monthly Magazine, Mehr 18, 1403 (October 9, 2024).
4. “What will happen to the 1 million unregistered iPhones? Ambiguities about lifting the import ban persist,” Eghtesad News, Aban 20, 1403 (November 11, 2024).
5. “Ministry of Industry mandated to implement the National Strategic Industrial Progress Document,” Jahan-e Sanat newspaper, Mehr 20, 1402 (October 12, 2023).
6. “Loss of $900 million from unofficial iPhone imports; pursuing the removal of bans,” ISNA, Shahrivar 13, 1403 (September 3, 2024).
7. “How many iPhone 13 devices were imported last year?” Mehr News Agency, Aban 12, 1401 (November 3, 2022).
8. Same as reference 7.
9. “Lifting the iPhone import ban benefits domestic manufacturers,” Tender and Auction Website, Aban 21, 1403 (November 12, 2024).