Apple's Expansion in India Set to Accelerate Thanks to Duty Reductions
Apple stands to benefit significantly from India's recent reduction in import duties on mobile phones and components, aimed at boosting local manufacturing and making high-end smartphones more affordable (via Reuters).
India has announced a 5% cut in import duties on mobile phones, printed circuit board assemblies (PCBAs), and mobile device chargers, reducing the rate from 20% to 15%. The move is expected to save Apple $35–50 million annually and supports the company's efforts to increase its manufacturing presence in India. Apple's assembly operations in the country, conducted through its partners like Foxconn, have grown significantly in recent years, with 14% of all iPhones now being produced in India. Foxconn has recently invested in new manufacturing plants in Karnataka and Tamil Nadu, further boosting production capacity.
The reduction in import duties is part of India's broader strategy to enhance its role in the global supply chain, particularly in the electronics sector. Apple continues to import a significant number of its premium models, such as the iPhone 15 Pro and iPhone 15 Pro Max, into India. The reduced import duties will make these high-end models more affordable for Indian consumers.
The country's official economic survey for 2024 also highlights the positive impact of initiatives such as the Production Linked Incentive (PLI) scheme and the Districts as Export Hubs (DEH) program. These programs have attracted substantial foreign investment, leading to increased local manufacturing capabilities.
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