Apple Reduces iPhone Prices in India Amid Lower Import Duties
In a move aimed at making its premium smartphones more affordable for Indian customers, Apple has cut the prices of its Pro iPhone models by 3% to 4%. This reduction comes on the back of India’s government slashing import duties on imported smartphones from 20% to 15%.
Price Cuts Across the Board
The price cuts range from ₹300 (approximately $3.6) for the made-in-India iPhone 13, iPhone 14, and iPhone 15 to ₹2,300 ($27.5) for the iPhone SE. The highest reduction of up to ₹6,000 ($72) is applicable to the iPhone 15 Pro and Pro Max models.
First-Time Price Reduction on Current Generation Pro Models
This is the first instance where Apple has lowered prices on current-generation Pro models in India. The price cut also coincides with a decline in demand for iPhones in China, where market research firm Canalys reported that Apple’s smartphone shipments had decreased by 6.7% in the quarter ended June compared to the same period last year.
Market Research Insights
Canalys research analyst Lucas Zhong noted that "Apple is facing a bottleneck in mainland China." Apple declined to comment on the matter.
Iphones Remain Prohibitively Expensive in India
Although the price reduction is a welcome move, iPhones continue to be prohibitively expensive in India. For instance, the cheapest iPhone 15 Pro model, which costs $999 in the U.S., still retails for $1,550 in India.
Apple’s Growing Presence in India
India has emerged as a key overseas market for Apple, with the company increasingly expanding its manufacturing base in the country. Apple’s revenue from India jumped 42% to $8.7 billion in 2023 compared to the previous year, according to Morgan Stanley.
Growing Demand for iPhones in India
iPhone shipments in India climbed 39% to 9.2 million units in 2023, making it the company’s fifth-largest market for its phones. According to Morgan Stanley, India’s market for iPhones is larger than any single country in the European Union.
Apple’s Market Share Surge in India
Apple’s share of the country’s smartphone market is also surging as the domestic economy improves. The company’s market share had reached double digits in Q4 last year, although it has since fallen, according to UBS and Counterpoint.
Future Plans: Apple to Assemble Pro Models in India
News outlet Moneycontrol reported that Apple plans to start assembling the pro models of its next-generation iPhone models in India this year. This move is expected to further boost the company’s manufacturing presence in the country.
Google’s Manufacturing Plans in India
Last year, Google announced that it would begin manufacturing its smartphone, the Pixel line-up, in India starting 2024. The development marks a significant milestone for the Indian smartphone market, which is witnessing increased competition from global players.
Industry Trends and Developments
- Apple’s growing presence in India
- iPhone shipments and revenue growth in India
- Market share of Apple in India’s smartphone market
- Manufacturing plans of Google and Apple in India
This article aims to provide a comprehensive overview of the recent price reduction by Apple, the Indian government’s move to lower import duties, and the implications for the company’s growing presence in the country.
