If Apple builds iPhone 16 in India and govt has already reduced tax and customs duty, will the iPhone 16 be cheaper in India? Many iPhone lovers want to know about it.
Will the iPhone 16 Be Cheaper After Custom Duty Cuts and Local Manufacturing in India?
When it comes to the iPhone 16, there are a few factors to consider. Let’s break it down:
Local Production in India:
Apple has been expanding its manufacturing operations in India. In July 2024, it was reported that Apple was preparing for iPhone 16 and iPhone 16 Pro model production in India.
If Apple builds the iPhone 16 in India, it could benefit from reduced production costs due to local manufacturing.
Tax Reduction:
The Indian government announced a reduction in import duties on mobile phones and key components from 20% to 15%. In the Budget 2024, there’s good news for mobile phone buyers, Finance Minister Nirmala Sitharaman announced a 15% duty cut on mobile phones and accessories. This reduction in customs duties is expected to lead to lower retail prices for mobile phones and chargers.
This tax cut is expected to make it cheaper for Apple to import iPhones into India.
Impact on iPhone 16 Pricing:
Apple has already reduced prices for some iPhone models in India following the tax cuts. For instance:
The iPhone 15 Pro and Pro Max saw price reductions of up to 6,000 rupees.
Made-in-India iPhones (such as the 13, 14, and 15 series) also saw modest decreases in price.
However, even with these reductions, iPhones in India are still around 1.5 times more expensive than in the US due to other factors.
Goods and Services Tax (GST):
The government charges an 18% GST on mobile phones in India. This additional tax affects the final price paid by buyers.
In summary, while local production and tax reductions can contribute to cost savings, the revised rates are still higher than in the US. Whether the iPhone 16 will be significantly cheaper in India depends on various factors beyond just tax reductions.