Apple cuts prices of iPhones in India amid tax cuts, China slowdown

Apple (NASDAQ:AAPL) has cut the prices of iPhones in India by up to 6,000 rupees (about $71.7) following a reduction in basic customs duty on mobile phones in the country, and a potential slowdown in China sales.

The U.S. tech giant has reduced the prices of iPhones by 3% to 4% across its entire range following which customers can save between 5,100 rupees ($60.9) to 6,000 rupees ($71.7) if they are buying the iPhone 15 Pro and Pro Max models. The iPhones including 13, 14 and 15 will be cheaper by 3000 rupees ($35.8), while iPhone SE would see a cut of about 2300 rupees ($27.5).

This is the first time Apple has reduced prices for its current generation Pro models in India.

Usually, Apple discontinues its Pro models after a new generation of Pro models are introduced in the market. The inventory of older Pro models is cleared by dealers and resellers by selective discounts due to which the selling price of the Pro models was not cut till now, The Economic Times reported, citing experts.

The price cut comes on the heels of a reduction in basic customs duty on mobile phones to 15% from 20% in the Indian Union Budget 2024 presented by Finance Minister Nirmala Sitharaman on July 23.

Following the levy cut as per the new budget, the total customs duty will be 16.5% (15% basic and 1.5% surcharge). In case of India-made phones, only Goods and Services Tax, or GST, at 18% is imposed. Currently, imported smartphones sold in India see 18% GST and 22% customs duty, according to a report by Indian daily Hindustan Times.

The price cut move also comes at a time when Apple’s iPhone shipments in China have been dipping amid fierce competition from local rivals such as Huawei Technologies and Vivo.

Apple ranked sixth with a market share of 14%, a decrease of 2% percentage points, compared to the second quarter of 2023. Chinese companies dominated all the top five spots in phone shipments for the second quarter of 2024 in the Asian country, according to data from research firm Canalys.

Additionally, Apple is also set to work with its manufacturing partners to build the iPhone 16 Pro and iPhone 16 Pro Max in India, Money Control reported.