Apple benefits as India cuts import tax on smartphones
India has lowered import duties on mobile phones and components from 20% to 15%. This decision is a win for tech giants like Apple, which heavily relies on imports for its high-end iPhones. While Apple has been boosting local production in India, this tariff cut will further reduce costs and potentially lead to lower prices for consumers.
Reuters:
Presenting the annual budget for 2024/25 in parliament on Tuesday, India’s finance minister Nirmala Sitharaman said import tax on mobile phones, printed circuit board assembly (PCBA) and mobile chargers is in the “interest of consumers.”
Almost 10-12% of the Apple iPhones are imported each year into India and a 5% reduction in tax on the devices will result in a $35-50 million annual benefit to Apple, said Neil Shah, a co-founder at Hong Kong-based Counterpoint Research.
Although Apple has boosted its local production in India through contract manufacturers such as Foxconn and India’s Tata Group, it still imports some of its high-end Pro and Pro Max iPhone models into the country.
Apple “will directly benefit… they (also) have some models for which PCBAs are still being imported,” said Shah.
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MacDailyNews Take: Great news for Apple which, according to Counterpoint, currently has a 6% share of India’s smartphone market.
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