New Delhi: In a significant move aimed at boosting the electronics manufacturing industry, Finance Minister Nirmala Sitharaman announced a reduction in the basic customs duty on mobile phones, chargers, and certain components as part of the Union Budget 2024. This reduction addresses a major demand from the electronics sector and is expected to have a substantial impact on the pricing of imported smartphones in India.
Key Changes in Customs Duty:
- Previous Customs Duty on Imported Smartphones:
- 20% Basic Customs Duty
- 2% Surcharge (10% of Basic Customs Duty)
- Total: 22%
- New Customs Duty on Imported Smartphones:
- 15% Basic Customs Duty
- 1.5% Surcharge (10% of Basic Customs Duty)
- Total: 16.5%
Despite the reduction, the 18% GST on imported smartphones remains unchanged. For Made-in-India phones, only the 18% GST is applicable, positioning them more favorably in the market.
Impact on iPhone Prices in India:
Following the announcement, Apple has significantly reduced the prices of its iPhones sold in India. This adjustment is particularly notable for the high-end Pro models, which have seen a price cut of up to Rs 6,000. The revised prices are now live on Apple’s official store and website.
New Prices for iPhone Models:
| iPhone Model | Old Price (Rs) | New Price (Rs) | Discount (Rs) |
|---|---|---|---|
| iPhone SE | 49,900 | 47,600 | 2,300 |
| iPhone 13 | 59,900 | 59,600 | 300 |
| iPhone 14 | 69,900 | 69,600 | 300 |
| iPhone 14 Plus | 79,900 | 79,600 | 300 |
| iPhone 15 | 79,900 | 79,600 | 300 |
| iPhone 15 Plus | 89,900 | 89,600 | 300 |
| iPhone 15 Pro | 1,34,900 | 1,29,800 | 5,100 |
| iPhone 15 Pro Max | 1,59,900 | 1,54,000 | 5,900 |
| iPhone 15 Pro Max (1TB) | 1,99,900 | 1,93,500 | 6,400 |
Context and Analysis:
The reduction in customs duty is part of the government’s broader strategy to enhance local manufacturing and make India a global electronics hub. By lowering the import duties, the government aims to reduce costs for consumers and encourage multinational companies like Apple to expand their local manufacturing footprint. Currently, while many of Apple’s iPhone models are manufactured in India, the high-end Pro models are still imported, making this price reduction particularly significant for these models.
Consumer Benefits:
Consumers in India can now enjoy lower prices on various iPhone models, making premium technology more accessible. The most substantial discounts are seen on the iPhone 15 Pro and iPhone 15 Pro Max models, which have been reduced by up to Rs 6,400 for the 1TB variant.
