iPhone imports into India to get cheaper, thanks to tax cut

iPhone imports into India are to get cheaper, thanks to a reduction in import taxes announced by the government. The change is expected to save Apple around $35M to $50M a year.

While India has become Apple’s second-biggest manufacturing hub after China, the company still imports a significant number of iPhones into the country …

iPhone imports into India

Apple has been making ever-increasing efforts to reduce its dependence on China as a manufacturing hub, with India now its second-biggest production center.

What started as an operation limited to the iPhone SE has grown in sophistication as well as scale – but not all premium models are yet manufactured there. This means that Apple needs to import some iPhones into the country for local sale.

Import taxes cut

Reuters reports that India has announced that import duties on mobile phones and some key components will be reduced from 20% to 15%, with Apple expected to be one of the main companies to benefit.

Almost 10-12% of the Apple iPhones are imported each year into India and a 5% reduction in tax on the devices will result in a $35-50 million annual benefit to Apple, said Neil Shah, a co-founder at Hong Kong-based Counterpoint Research.

Samsung is said to benefit to a smaller degree, as almost all of the models sold in the country are manufactured locally.

Apple’s share of the smartphone market in India has grown from 1% in 2018 to 6% today, thanks to a growing middle class in the country.

Photo: Apple