India has announced a significant reduction in import taxes on mobile phones, including iPhones, which is expected to result in substantial savings for Apple. The government’s decision to lower import duties from 20% to 15% will help Apple save an estimated $35 million to $50 million annually.
While Apple has been ramping up its manufacturing operations in India, making it the company’s second-largest production hub after China, not all models are produced locally. Consequently, Apple still imports a notable number of iPhones into India to meet market demand.
The tax cut is part of a broader effort by India to encourage more technology companies to establish and expand their manufacturing facilities within the country. By reducing the financial burden of importing devices, the Indian government aims to make high-end smartphones more accessible to the growing middle class.
Apple’s share of the Indian smartphone market has seen significant growth, rising from 1% in 2018 to 6% today. This increase is largely attributed to the expanding middle class and Apple’s strategic focus on the Indian market.
In contrast, Samsung, which manufactures almost all of its models locally, will see a smaller benefit from the tax reduction. Nonetheless, the move underscores India’s commitment to fostering a favorable environment for tech giants and boosting local manufacturing capabilities.
