Apple announces iPhone price cuts after budget change on customs duties
Apple Inc on Friday slashed prices of the iPhone by up to Rs 5,900 across the board, passing on the benefit of announcements in India’s annual budget that included a 5 percent cut in basic customs duty (BCD) on imported mobile phones. The duty was earlier fixed at 22 percent.
Additionally, the Budget has reduced the BCD on chargers and PCBAs, a key component in smartphone assembly in India, from 20 percent to 15 percent.
The company’s steepest price cut was on the entry-level iPhone SE, which is assembled in the country. Its price was slashed from Rs 49,900 to Rs 47,600, a 4.6 percent reduction that would help Apple expand its presence in the domestic market.
Apple also announced price cuts for the iPhone 15 Pro and Pro Max, which are being imported into India. While the iPhone 15 Pro is said to be Rs 5,100 cheaper, the iPhone 15 Pro Max is Rs 5,900 cheaper. The iPhone Pro now stands at Rs 129,800 – a 3.7 percent price cut – and the iPhone Pro Max stands at Rs 154,000, a 3.7 percent drop.
Price cuts for other iPhone models assembled in the country are marginal. The cut is Rs 300 for the latest iPhone 15, as well as the iPhone Plus and the previous generation iPhone 14 and iPhone 14 Plus. These models are assembled in the country and do not benefit from the BCD cut.
The reduction in BCD on mobile phones does not benefit Samsung, another major player in the Rs 45,000-plus ultra-premium market. That’s because it assembles all its phones, including the flip, foldable and the Ultra, in the country.
Apple Inc has seen dramatic growth in its revenues in the domestic market, which rose seven-fold from Rs 11,000 crore in FY19 to an expected Rs 67,000 crore in FY24. In FY24, it catapulted to the top position in terms of revenue share at 23 per cent, unseating Samsung by one percentage point to number two.
First print: Jul 26, 2024 | 5:41 PM IST