After the recent introduction of GST, everyone expected the costs of iPhones in India to shoot up. However, Apple has reduced the base price of their iPhones, thereby effectively nullifying the effects of new tax laws.
With the launch of GST, Indian government introduced a “basic customs duty of 10 percent on mobile phones”, smartphone accessories and certain other electronics. It was clear move to discourage foreign sellers and help local sellers — such as Micromax and Lava — grow.
According to Gadgets360 —
“The move, which is an attempt to further support local companies, is expected to impact phone makers such as Apple and Lenovo.”
Apple could have just raised their prices in response to the rise in tax levels. However, obviously, Apple has taken into consideration the highly price-sensitive Indian market. The net effect is that the cost of iPhones in India has actually gone down!!
In fact, post-GST, Apple has reduced the base prices for all their devices. That’s why we are seeing a reduction in the prices of all Apple devices, and not just iPhones in India.
This is a good move from Apple, given that it needs to consolidate market share in India and do it soon. Low prices will help their products stay competitive in the market. The iPhones in India, especially, are being drowned in competition from Chinese brands such as Oppo, OnePlus, and Xiaomi.
“I think it’s a good move ahead of the upcoming festive season. We believe the best way for Apple to increase their share in India is to bridge the gap between affordability and aspirational value of the iPhone,” Tarun Pathak, a senior analyst at Counterpoint Research told Gadgets 360 in a statement.
Meanwhile, we’re still waiting to see how the iPhones manufactured in India are going to play out in the whole scenario. One thing is certain, though: Apple is entering a crucial phase of their operations in India. And they’d better get most, if not all, of their strategies right. Otherwise, it’s going to be a long and hard battle for Apple in India.
