Apple Slashes iphone Prices In india Post Import Duty Cut, Pro Models Get Biggest Price Drop

Days after the government announced its decision to reduce import duties on foreign-made smartphones from 20-15 percent, Apple on Friday implemented price cuts across its iphone lineup in India.

Days after the government announced its decision to reduce import duties on foreign-made smartphones from 20 percent to 15 percent, apple on friday implemented price cuts across its iphone lineup in India. The price cuts vary by iphone model, with the locally manufactured iphone 13, iphone 14, and iphone 15 seeing modest decreases of around Rs 300 ($3.6). However, more substantial price cuts have been implemented for other iphone models, with the iphone SE price dropping by Rs 2,300 ($27.5).

iPhone Pro Models Getting Biggest Price Cut In India

The super-premium iphone 15 Pro and iphone Pro Max are getting the largest price cuts of up to Rs 6,000 ($72).

This marks a significant shift in Apple's pricing strategy for india, as this is the first instance of the tech giant lowering prices on its current-generation iphone Pro models in the country.

India Price Cuts Coincide With Falling china Demand

The timing of these price cuts in india coincides with reports of slowing iphone demand in china, another key market for Apple. Recent data from market research firm Canalys indicates that Apple's smartphone shipments in china decreased by 6.7 percent in the most recent quarter compared to the same period last year.

Also, recent data from Consumer Intelligence Research Partners (CIRP) reveals an interesting trend in the smartphone market, which shows a significant increase in Android users making the switch to apple iPhone. During the june quarter, a five-year high of 17 percent of new iphone purchasers were former Android users, nearly doubling from 10 percent in the same period last year.

Understanding GST, Customs Duty On Imports

 In india, the tax structure for smartphones varies depending on whether they are imported or locally manufactured. Currently, imported devices are subject to an 18 percent Goods and services Tax (GST) and a 22 percent customs duty. Additionally, there is a surcharge of 10 percent on the basic customs duty.

The recent budget announcement has introduced changes to this structure. The basic customs duty on imported smartphones will be reduced to 15 percent, while the surcharge will remain at 10 percent of this new rate. As a result, the total customs duty will decrease to 16.5 percent, comprising the 15 percent basic duty plus a 1.5 percent surcharge.

For smartphones produced within India, the tax burden is significantly lower, with only the 18 percent GST being applicable.

In the case of apple, the company has made significant strides in localizing its production. Presently, 99 percent of iPhones sold in the indian market are manufactured domestically. Only a small selection of high-end iphone models continues to be imported.