- 2024 Union Budget was announced with a lower basic customs duties on smartphones.
- Soon after the announcement, Apple has slashed prices on iPhones as much as INR 6,000/- on the top-end iPhone 15 Pro Max.
- iPhone prices are still higher in India even though if has become the fifth-largest market for Apple.
Right after the 2024 Union Budget in India was announced, we have heard that Apple slashed prices of iPhones by 3 to 4 percent. It means you’ll get a straight price drop of up to IR 3,000/- or $36 on iPhone 13, 14, and 15. It is the first time Apple is offering a deep price cut on the current iPhone 15 Pro and iPhone 15 Pro Max at up to INR 6,000/- or $71.70).
iPhone Prices Slashed, as China Sales Slow Down
India’s Finance Minister Nirmala Sitharam revealed the 2024 Union Budget on Tuesday offering a cut in basic customs duty on smartphones. The taxes dropped from 20% to 15% and leveraging that, Apple has slashed the prices on its range of iPhones by 3 to 4 percent offering potential buyers a chance to get their hands on the device.
This was a no-brainer given iPhone shipment in China is slowing down. Canalys estimated that shipment in China fell by 6.7 percent in the second quarter of this year signaling an immediate action plan to ship more units.
The reduced basic customs duty offered by the 2024 Union Budget is Apple’s baton to get more shipments in a country where you’ll have to shell out almost 1.5x the price for an iPhone 15 Pro compared to the units sold in the US. For those unaware, the price for iPhone 15 Pro sold in the US is $999 while the Indian markets get the same device at a whopping $1,550.
India is currently the fifth largest smartphone market for Apple with more than 9.2 million units sold in 2023 reporting a 39% increase compared to last year. This makes India the biggest market compared to any single country within the EU.
India’s latest reduction in import duties will benefit smartphones made in India. Given the Make in India push and setting up of various manufacturing plants in India by Foxconn for Apple, the Cupertino-based giant will see the most out of the duties reduction. For those who want to know numbers, around 14 percent of all iPhones are currently being produced in India and the numbers are expected to grow immediately given Foxconn’s heavy investment across facilities in the country.
The sad reality is, that even with a 3 to 4% reduction in price tags, iPhones are still expensive in India. This could be a lot of things both for Apple and potential buyers, however, there should be a subset of buyers happy with the price reduction for sure.
