Apple raised prices of most iPhone models sold in India by as much as 5 per cent after the government pushed through an import duty hike on smartphones to 15 per cent from 10 per cent.

The US-based smartphone giant increased prices on all iPhone models sold in India except for the iPhone SE which is assembled locally. The increase, which became effective today, pushed up the price of the iPhone X 256GB version by INR3,500 ($54.58) to INR105,720 and the iPhone 6 256GB model by INR1,500 to INR30,780, The Economic Times (ET) reported.

Apple had been holding discussions with the Indian government about deferring a planned increase in import taxes on mobile phones components so it could expand local production of iPhones in the world’s second-largest smartphone market and hit the local content requirement needed to open Apple stores in the country.

Before the duty increase, India ranked as the most expensive market in Asia for the iPhone X based on research by Mobile World Live. In November the iPhone X 256GB was listed on Apple’s Japanese website for $1,158 compared with $1,570 in India.

Analysts say Apple will be hit hard by the duty hike since it imports about 88 per cent of iPhones sold locally, ET reported. The company started assembling the iPhone SE in May with output reportedly between 25,000 and 50,000 units a month.