Apple Lowers iPhone Prices and Eyes iPad Assembly in India
Apple has reduced iPhone prices in India for the first time following a cut in import duties and is considering assembling iPads in the country for the first time.
As noted by TechCrunch, Apple has lowered the prices of its iPhone models in India by 3-4% after the Indian government reduced import duties on smartphones from 20% to 15% in its annual budget on July 23. This price reduction marks the first time Apple has decreased prices on its Pro models in India, with the cuts ranging from 300 rupees ($3.60) for models like the iPhone 13, 14, and 15, to up to 6,000 rupees ($71.70) for the iPhone 15 Pro and iPhone 15 Pro Max.
In parallel with these price adjustments, Foxconn, Apple's main contract manufacturer, is reportedly exploring the possibility of assembling iPads at its facility in Tamil Nadu, India, according to The Economic Times. This would mark a significant expansion from Foxconn's current focus on iPhone production in India and reflects confidence in India's growing supply chain capabilities, aligning with Apple's broader strategy to diversify its manufacturing base away from China. Discussions between Foxconn and the Indian government have apparently already taken place.
The reduction in import duties is part of India's broader economic strategy to boost local manufacturing and integrate more deeply into the global electronics supply chain. By lowering the cost of high-end smartphones like the iPhone, the Indian government aims to make these devices more accessible to a larger segment of the population. This also supports Apple's ongoing efforts to expand its footprint in the Indian market, which has become increasingly important as growth in more established markets like China has slowed.
Apple's assembly operations in India have seen significant growth in recent years. Currently, about 14% of all iPhones are produced in India, a number that is expected to increase as Foxconn and other partners expand their facilities in the country. Foxconn has already invested heavily in new manufacturing plants in Karnataka and Tamil Nadu, and the prospect of iPad assembly in India could see Apple's presence in the country increase even further.
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