Apple slashes iPhone prices in India by up to Rs 6,400 after import duty cut — check new prices here

Apple has announced a significant price reduction for its iPhone models in India, ranging from 3% to 4%, following the Indian government’s decision to slash import duties on smartphones from 20% to 15%. This marks the first time Apple has lowered prices on current-generation iPhone models in the country, highlighting India’s growing importance as a key market for the tech giant.

Price reductions across models

The price cuts for Apple’s iPhones vary across different models. The made-in-India iPhone 13, iPhone 14, and iPhone 15 have seen a modest reduction of Rs 300. The iPhone SE has had its price reduced by Rs 2,300. However, the most significant price drops are for the iPhone 15 Pro models. The iPhone 15 Pro 128GB, originally priced at Rs 1,34,900, is now available for Rs 1,29,800—a difference of Rs 5,100. The iPhone 15 Pro Max, which initially retailed for Rs 1,59,900, can now be purchased for Rs 1,54,000, reflecting a reduction of Rs 5,900.

Government’s initiative to boost affordability and manufacturing

The price cuts follow Finance Minister Nirmala Sitharaman’s 2024 budget announcement, which included a significant tax reduction on mobile phones, mobile PCBs, and chargers. This move aims to make smartphones more affordable and stimulate domestic manufacturing. Sitharaman emphasised that the Indian mobile industry has matured, and this tax cut will benefit original equipment manufacturers (OEMs) by reducing production costs within the country.

India is a key market for Apple

India has rapidly become a crucial overseas market for Apple, which is actively expanding its manufacturing presence in the country. According to Morgan Stanley, Apple’s revenue from India soared by 42% to $8.7 billion in 2023 compared to the previous year.

iPhone shipments in India saw a significant increase of 39%, reaching 9.2 million units in 2023. This growth makes India Apple’s fifth-largest market for its phones, surpassing the sales in any single country within the European Union.

Despite a 4% year-over-year decline in Apple’s quarterly revenue for the fiscal 2024 second quarter ending March 30, 2024, the Indian market stood out as a bright spot. The robust double-digit growth in India was prominently highlighted by CEO Tim Cook during the company’s recent earnings call, underscoring the country’s potential and strategic importance for Apple’s future growth.

During the earnings call, Cook repeatedly emphasised India’s critical role in Apple’s overall strategy. He discussed the country’s comprehensive ecosystem, from developers to market opportunities and operational logistics, referring to India as a “green spot” amidst other global challenges. Market research firms indicate that Apple currently holds a 7% share of India’s smartphone market. Although this may seem modest, it marks a significant leap from less than 1% just a few years ago.

“We did grow strong double-digit in India. And so we were very, very pleased about it. It was a new March quarter revenue record for us,” Cook stated. He further described India as an “incredibly exciting market” and a major focus for the company.

Cook also highlighted the importance of local manufacturing in India to remain competitive in the world’s fastest-growing smartphone market. He pointed out that Apple’s physical stores in Mumbai (BKC) and Delhi (Saket) offer enormous opportunities for further growth.

“In terms of the operational side or supply chain side, we are producing there. From a pragmatic point of view, you need to produce there to be competitive,” Cook added. He also mentioned Apple’s continued efforts to expand its distribution channels across the country.

As Apple continues to invest in local manufacturing and expand its retail presence, it aims to strengthen its foothold and increase its market share in India.