Apple announces cuts in iPhone prices after Budget move on customs duty
Apple Inc on Friday cut prices of the iPhone by up to Rs 5,900 across the board, passing on the benefit of announcements in India’s annual Budget which included a 5 per cent reduction in the basic customs duty (BCD) on imported mobile phones. The duty was earlier pegged at 22 per cent.
That apart the Budget reduced BCD on chargers and PCBAs, a key element in assembling smartphones in India, to 15 per cent from 20 per cent.
The company’s sharpest price cut was in the entry-level iPhone SE, which is assembled in the country. The price was reduced from Rs 49,900 to Rs 47,600, a 4.6 per cent cut that would help Apple expand its presence in the domestic market.
Apple also announced price cuts for iPhone 15 Pro and Pro Max, which are imported to India. While iPhone 15 Pro would be cheaper by Rs 5,100, iPhone 15 Pro Max is down by Rs 5,900. iPhone Pro is now pegged at Rs 129,800 – a price reduction of 3.7 per cent and iPhone Pro Max at Rs 154,000, a drop of 3.7 per cent.
Price cuts for other iPhone models assembled in the country are marginal. The reduction is Rs 300 for the latest iPhone 15 as well as the iPhone Plus and that of the previous generation of iPhone 14 and iPhone 14 Plus. These models are assembled in the country and do not benefit from the reduction of BCD.
The reduction in BCD on mobile phones does not benefit Samsung, another key player in the Rs 45,000 plus ultra-premium market. That is because it assembles all its phones which include the flip, foldable and the Ultra in the country.
Apple Inc has seen a dramatic growth in its revenues in the domestic market which have gone up seven fold from Rs 11,000 crore in FY19 to an expected Rs 67,000 crore in FY24. In FY 24 it catapulted into the top spot in terms of revenue share at 23 per cent, pulling down Samsung by one percentage point from that spot to number two.
First Published: Jul 26 2024 | 5:41 PM IST