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Days after Finance Minister Nirmala Sitharaman announced slashing of duties for mobile phones and some components, Apple has announced a price cut for a number of its iPhone models, starting from the entry level iPhone SE to the current top of the line iPhone 15 Pro Max.
The reduction in price is the steepest in the case of the iPhone SE, where the price has been dropped to Rs 47,600 from the earlier sticker price of Rs 49,900. For some of the more popular models, like the base iPhones 13 through 15, the reduction in price is marginal, with the MRP having dropped a mere 0.5 per cent. It could be because these models are being assembled in India, and may not enjoy the benefits of a reduction in customs duties.
For some of the top end models, like the iPhone 15 Pro and iPhone 15 Pro Max, the price has been dropped by 3.8 per cent and 3.7 per cent respectively. These phones are yet to be made in India, which explains why the price reduction in these cases has been noticeable.
The reduction in the prices come after Sitharaman announced a reduction in basic customs duties for mobile phones, printed circuit board assemblies, and mobile chargers from 20 per cent to 15 per cent in the Union Budget 2024.
Before the interim Budget in February this year, the Finance Ministry had slashed the import duty on a number of components such as mechanics and die cut parts, and all others inputs of mobile phones classified as ‘others’ under HSN code 85177990, from 15 per cent to 10 per cent.
Though the prices have dropped, it is worth noting that the iPhone still costs more in India than countries like the United States. For instance, in the US, the iPhone 15 Pro Max costs a little more than Rs 1,00,000. Compared to India, that is cheaper by Rs 54,000.
Even though its phones continue to be prohibitively expensive in the country, India has emerged as an important market for Apple, especially since it has moved a portion of its assembly process here, in a diversification move away from China. Apple’s revenue from India jumped 42% to $8.7 billion in 2023 from a year earlier, according to Morgan Stanley.
iPhone shipments in India climbed 39% to 9.2 million units in 2023, making it the company’s fifth-largest market for its phones. India’s market for iPhones is larger than any single country in the European Union, Morgan Stanley added.
