Apple slashes iPhone prices by up to 7.5% in India
Apple has reduced retail costs of all its iPhones to 7.5% by 4% starting from July 2017, as the Cupertino-based tech major passed on profits accumulated from Goods And Services Tax (GST) rule to users.
As per the changes in costs on the website of the company posted this week, the costliest iPhone 7 Plus with an internal storage capacity of 256 GB, which was priced for Rs 92,000, will now be available with a price tag of Rs 85,400. The iPhone 6s starting version with an internal storage capacity of 32 GB will now be obtainable for Rs 46,900, a slip of 6.2%.
The iPhone SE, which is being manufactured by Wistron Corp. in Bengaluru, has become affordable by at least 4%, with prices of the iPhone SE with an internal storage capacity 32 GB model dropped from the earlier Rs 27,200 to Rs 26,000. The 128 GB variant now comes at Rs 35,000 by 6% affordable.
Industry analysts claimed that the new costs, implied on the occasion of GST, also fueled in the Basic Customs Duty (BCD) of 10% obligatory on smartphones that are imported into the nation. One of them made it cleared that the overall duty on iPhones was quite elevated, so even with the rate of 12% GST and customs tax, the net duty is less than what was being charged before July 2017, hence the slashing in prices. A source having a deep knowledge of this issue claimed that had the BCD not been implied, costs might have slashed even more.
The decision makes the iPhone much more good-looking to users in the Indian smartphone market, who thinks of the brand as a high standard. The slashing of price might help Apple hugely in gathering share in an extremely aggressive Indian smartphone market, from the current levels of 2.6% in the quarter one of 2017. In the section above Rs 30,000, the company has a 43% contribution, following Samsung Electronics, the current market leader.
Apple thinks India as a very significant market for the iPhone and has increased its investments into the nation since the last few years.