Apple was able to reduce the prices of its current iPhone models in India for the first time, thanks to a decrease in Indian import duties on smartphones shipped into the country. The price cuts ranged from 3% to 4%. India is the world’s second-largest smartphone market, after China, and ahead of the U.S.
The change in India’s budget was implemented on July 23rd, resulting in Apple reducing the prices of iPhones such as the locally made iPhone 13, 14, and 15 by 300 rupees ($3.60). Since these models were manufactured in India, they were not impacted by the reduction in import duties. The cost of the iPhone SE 3 was lowered by 2,300 rupees ($27.50).
The current premium models of the iPhone 15, such as the iPhone 15 Pro and iPhone 15 Pro Max, have received a significant price reduction of up to 6,000 rupees ($71.70). Despite being the world’s second-largest market for smartphones, India is still considered a developing country. Glassdoor reports that the average monthly salary in India ranges from 8,000 rupees ($95.55) to 143,000 rupees ($1,708.02), which is why Xiaomi, a value-for-money brand, is popular in the country. This also explains why Android dominates with a 95.03% share of smartphone sales in India.
Despite the price reduction, iPhone models remain highly expensive in India. For instance, the iPhone 15 Pro, the most affordable iPhone model set to receive Apple Intelligence later in the year, is priced at $990 in the U.S. In India, the identical phone will be priced at $1,550, representing a 55% increase.
Apple seems to be worried about the trend of iPhone sales in Asia, especially after recent data revealed that Apple was no longer among the top five smartphone brands shipped in China during the second quarter. It is possible that Apple is banking on reducing iPhone prices in India to boost sales in the region.
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Despite Apple’s years of experience building iPhone prices in India, the initial goal was to avoid India’s import tax on smartphones entering the country. Initially, Apple manufactured older models in India, but recently, some iPhone 15 and iPhone 15 Plus units were produced in the country. Currently, Apple is contemplating the assembly of iPads in India at Foxconn’s facility in Tamil Nadu. Foxconn has already engaged in talks with the Indian government regarding the production of tablets within the country.
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Although there has been little recent news regarding Apple’s efforts to diversify production outside of China, the decision to shift some iPad production to India suggests that Apple is gaining trust in the supply chain it has established in the region. Transitioning away from China may still be a future objective for Apple.
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