For the first time, Apple has reduced iPhone prices in India. This move comes in response to a reduction in import duties on smartphones from 20% to 15% in the Indian government’s latest budget. Consequently, Apple has lowered prices of its iPhone models by 3-4%. This translates to price cuts ranging from 300 rupees ($3.60) for models like the iPhone 13, 14, and 15, to up to 6,000 rupees ($71.70) for the iPhone 15 Pro and iPhone 15 Pro Max.
Expanding Manufacturing in India
Simultaneously, Apple’s primary contract manufacturer, Foxconn, is exploring the possibility of assembling iPads at its facility in Tamil Nadu, India. This would be a significant expansion from Foxconn’s current focus on iPhone production in the country. Discussions between Foxconn and the Indian government are reportedly underway. This indicates growing confidence in India’s supply chain capabilities.
Strategic Shift and Economic Benefits
The reduction in import duties and potential local assembly of iPads align with India’s broader strategy to boost local manufacturing. By lowering the cost of high-end smartphones, the Indian government aims to make these devices more accessible. This strategy, therefore, supports Apple’s efforts to expand its market presence in India. The country is becoming increasingly important as growth in more established markets like China slows.
Apple’s Growing Presence in India
Apple’s assembly operations in India have grown significantly in recent years. Currently, about 14% of all iPhones are produced in the country. This figure is expected to rise as Foxconn and other partners expand their facilities. Furthermore, Foxconn has already made substantial investments in new manufacturing plants in Karnataka and Tamil Nadu. The prospect of iPad assembly in India, therefore, underscores Apple’s commitment to increasing its presence and capabilities in the region.
With these developments, Apple is poised to strengthen its market position in India. The company benefits from the government’s supportive policies and the country’s evolving manufacturing ecosystem.
