Government recently announced its decision to reduce import duties on foreign-made smartphones from 20 per cent to 15 per cent. Following this, Apple implemented price cuts across its iPhone lineup in India.
The price cuts vary by iPhone model, with the locally manufactured iPhone 13, iPhone 14, and iPhone 15 seeing modest decreases of around Rs 300 ($3.6).
The super premium iPhone 15 Pro and iPhone Pro Max are getting the largest price cuts of up to Rs 6,000 ($72).
This marks a significant shift in Apple's pricing strategy for India, as this is the first instance of the tech giant lowering prices on its current-generation iPhone Pro models in the country.
The timing of these price cuts in India coincides with reports of slowing iPhone demand in China, another key market for Apple.
In India, the tax structure for smartphones varies depending on whether they are imported or locally manufactured. Currently, imported devices are subject to an 18 per cent GST and a 22 per cent customs duty. Additionally, there is a surcharge of 10 per cent on the basic customs duty.
The recent budget announcement has introduced changes to this structure. The basic customs duty on imported smartphones will be reduced to 15 per cent, while the surcharge will remain at 10 per cent of this new rate.
As a result, the total customs duty will decrease to 16.5 per cent, comprising the 15 per cent basic duty plus a 1.5 per cent surcharge.
In the case of Apple, the company has made significant strides in localising its production. Presently, 99 per cent of iPhones sold in the Indian market are manufactured domestically.