Apple iPhones, Google Pixels to Get Cheaper, Thanks to Sitharaman’s Budget

Owning high-end smartphones like Apple iPhones or Google Pixels may now be more affordable as the government has announced a reduction in the basic customs duty (BCD) on mobile phones and key parts from 20% to 15%. This move aims to benefit consumers and strengthen India’s position as a smartphone manufacturing hub, according to Finance Minister Nirmala Sitharaman’s budget announcement.
Presenting the annual budget for 2024-25 in parliament, Finance Minister Sitharaman stated that the import tax cut on mobile phones, printed circuit board assembly (PCBA), and mobile chargers is in the “interest of consumers.” This change is expected to benefit companies like Apple, which still imports some high-end smartphones into India despite increasing local production.
Nearly 10-12% of Apple iPhones are imported annually into India. A 5% tax reduction on these devices could result in an estimated $35-50 million annual benefit to Apple, according to Neil Shah, co-founder of Counterpoint Research. Although Apple has boosted local production in India through contract manufacturers like Foxconn and Tata Group, it still imports some high-end Pro and Pro Max models.
The move is also expected to lower import duties for new market entrants, potentially reshaping the competitive landscape.
Other manufacturers, such as Samsung, are also set to gain, albeit to a lesser extent since most of their smartphones are produced locally.Currently, Apple holds a 6% share of India’s smartphone market, according to Counterpoint.
In January, India’s deputy IT ministry privately advocated for reducing import taxes on mobile phones, warning that India risks falling behind China and Vietnam as a major smartphone export hub. Lower tariffs are deemed essential to attract global companies quickly.
Prime Minister Narendra Modi has actively promoted India as a smartphone manufacturing hub, with the nation’s $24-billion local production scheme covering mobile phones. This initiative has led companies like Apple, Xiaomi, Samsung, and Vivo to expand their local operations. China’s Xiaomi has also requested tariff reductions on sub-components used in batteries, USB cables, and phone covers, highlighting broader industry support for lower import duties.

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