Apple Cuts iPhone Prices in India Following Duty Reductions

NEW DELHI: In a significant move for the Indian smartphone market, Apple has announced a reduction in prices for several iPhone models, ranging from the entry-level iPhone SE to the top-tier iPhone 15 Pro Max. This price cut follows Finance Minister Nirmala Sitharaman's recent announcement of reduced duties on mobile phones and certain components.

The most notable price drop is seen with the iPhone SE, which now retails at Rs 47,600, down from Rs 49,900. Meanwhile, more popular models such as the base versions of the iPhone 13 through iPhone 15 have seen marginal price reductions of about 0.5%. This minimal decrease is attributed to these models being assembled in India, which does not fully benefit from the customs duty reduction.

For the high-end models like the iPhone 15 Pro and iPhone 15 Pro Max, prices have been reduced by 3.8% and 3.7%, respectively. These models are not yet manufactured in India, explaining the more noticeable price cuts.

This development comes after Sitharaman's announcement in the Union Budget 2024, where basic customs duties for mobile phones, printed circuit board assemblies, and mobile chargers were reduced from 20% to 15%. Additionally, before the interim Budget in February, the Finance Ministry had slashed import duties on various components, including mechanics and die-cut parts, from 15% to 10%.

Despite the price reductions, iPhones in India remain more expensive compared to other countries, such as the United States. For instance, the iPhone 15 Pro Max costs over Rs 1,00,000 in the US, which is Rs 54,000 cheaper than in India.

Nevertheless, India has become an increasingly important market for Apple. The company has shifted part of its assembly process to India as a strategic move to diversify from China. According to Morgan Stanley, Apple’s revenue from India surged 42% to $8.7 billion in 2023. iPhone shipments in India also climbed 39% to 9.2 million units, making it Apple's fifth-largest market globally, surpassing any single country in the European Union.

These price reductions are expected to further boost Apple's presence and sales in the Indian market, aligning with the company's broader strategy to expand its footprint in one of the fastest-growing smartphone markets in the world.

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