Finance Minister Nirmala Sitharaman announced the Union Budget 2024 recently, which includes the reduction of basic custom duty on smartphones from 20 percent to 15 percent. Following this move by the government, California-based tech giant Apple has also reduced the price of iPhones by three to four percent. This included a major price cut on the price of premium iPhones like the Pro and Pro Max models in India by Rs 5,100 to Rs 6,000.
This would benefit customers and increase iPhone sales in India. However, to clear out older inventory, the maximum retail price (MRP) of Pro models remains unchanged. Although dealers and resellers are offering discounts on old inventory,.
According to the budget presented by Finance Minister Nirmala Sitharaman, there is not just a reduction in the basic customs duty on smartphones but also a decrease in the customs duty on printed circuit board assemblies for phones and chargers. Earlier, customs duty on imported smartphones was 22 percent, which was reduced to 16.5 percent.
iPhones are mostly manufactured in India to save on customs duty or other charges, and only a few high-end iPhones are imported. Imported smartphones in India face an 18 percent GST along with 22 percent customs duty and a 10 percent surcharge on basic customs duty. Whereas the Made in India smartphones only face 18 percent GST.
Apple has made different price cuts on different models. The Pro and Pro Max will have a price cut of Rs 5,100 to Rs 6,000, whereas the iPhone 13, 14, and 15 will get cheaper by Rs 300. These major price cuts by Apple on its iPhone will ensure that iPhones are accessible to the maximum Indian customers.
