Apple has reduced prices of iPhones, iPads and Macs in India after the country’s latest tax regime became effective from July 1.
Prices of iPhone 7 Plus (256GB version) have been reduced from Rs 92,000 to Rs 85,400. Similarly, price of iPhone SE (128GB) has been reduced by Rs 2,200 to Rs 35,000. The new prices listed on the company’s website is upto 7.2 per cent lower than previous iPhone prices. The 12.9-inch iPad Pro (512GB) will see its price coming down from over Rs one lakh to Rs 97,000.
Apple hasn’t clarified why the prices of its products have been reduced and whether the price reduction was on account of GST. Under the new GST regime, smartphones will be taxed at 12 per cent as compared to an earlier range of 8-18 per cent depending on the states. Interestingly, the government has also introduced a 10 per cent basic customs duty on mobile phones and certain parts, in a bid to promote domestic manufacturing. However, domestic players like Micromax and Lava are unlikely to revise their prices after GST implementation.
India is an important market for Apple and this move could help the US-based firm further consolidate its position here. According to industry estimates, Apple has a 44 per cent share of the premium market (USD 400 and above), while rival Samsung had 41 per cent share in the January-March 2017 quarter. Other players in the category include the likes of OnePlus, LG, Sony and HTC. Apple’s revenue grew more than 20 per cent in India in the quarter ended March 2017.
Acknowledging that Apple is “underpenetrated” in India, CEO Tim Cook has said the US tech giant is strengthening its local presence in the country and is optimistic about its future given the fast-growing economy and improving 4G network infrastructure in the country.