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Would Rising Import Duties Impact Apple in India?

by Rajeev Nair | Dec 19, 2017

The Indian government recently raised import duties on smartphones to 15%, from the earlier 10% and in line with its intent of further scaling up local manufacturing in the country. Apple is among the few smartphone vendors with limited local production commitments and is likely to be adversely impacted by this move. The vendor was ranked among the top 10 in our most recent analysis on the Indian Smartphone Market, available here, from our Handset Country Share Tracker (HCST) Service.

The rise in import duty has led to a hike in prices across all iPhone models available in the country except iPhone SE, which Apple assembles locally. The vendor off lately has been aggressive in the Indian market, offering heavy subsidies for iPhones by tying up with new and disruptive operator and online channels.

We have recommended a series of steps for Apple, in our latest insight report available here, on how to grow in India. The country’s smartphone market grew in double digits in Q3 2017 and is the third largest globally. It holds the potential to offset the some of the growth challenges Apple faces in China and Asia Pacific region. The analysis also brings to focus the scenario of higher import duties in the country and how Apple could look to deal with it.

                       IPhones India


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