For the first time since a cut in import duties, Apple has reduced iPhone prices in India and is considering assembling iPads in the country. TechCrunch described on Friday that Apple’s iPhone pricing had fallen by 3-4 percent in India after the government reduced tariffs on phones from 20 percent to 15 percent in the budget disseminated on July 23.
Apple Cuts iPhone Prices
The reduction in import tariffs and removal of customs dues were a couple of the operations to boost the nation’s trade balance. This stint is the first time Apple Inc. has cut pricing on its Pro models in India. Prices have plummeted by 300 rupees for iPhone 13, 14, and 15 models, while 15 Pro models have seen a decrease of up to 6,000 rupees.
The Economic Times also reported that Foxconn, Apple’s main contract manufacturer is mulling to assemble iPads at its plant in Tamil Nadu besides announcing the price cuts. This would be a major departure from Foxconn’s existing work in India producing iPhones but about partner confidence in the region accruing the necessary supply chain capabilities as Apple seeks to broaden its manufacturing beyond China. The confirmation of any negotiation has not been announced so far but talks between Foxconn and the Indian government are believed to have already taken place.
The decrease in import duties is a part of the wide-ranging strategy and economic measures implemented by India to ramp up local manufacturing and establish itself more firmly into global electronics supply chains. Lower-cost iPhones can help increase the availability of high-end smartphones to more people, which is a key goal for the Indian government. This also backs Apple’s movement to increase its presence in the Indian market, which has become even more crucial as demand plateaus for well-established markets like China.
Apple has been increasing its assembly operations in India. Today, approximately 14% of all iPhones are manufactured in India – a figure that will increase as Foxconn and other partners grow their presence throughout the country. Foxconn already has significant investments in brand-new manufacturing plants in Karnataka and Tamil Nadu, while the chance to assemble iPads locally would serve Apple’s wider interests for local presence within India.
FAQs
Why did Apple reduce iPhone prices in India?
Apple reduced iPhone prices in India due to the Indian government’s recent cut in import duties on smartphones from 20% to 15%.
What is Apple planning to assemble in India next?
Apple, through its main contract manufacturer Foxconn, is considering assembling iPads in India for the first time.
