Union Budget 2024: Experts predict Apple will be primary gainer from import duty reductions.

Apple imports all the high-end iPhone Pro models that it sells in India, while some other companies import their flagship devices for some period in small quantities and then make them locally. An e-mail sent to Apple seeking comments did not elicit any response. Finance Minister Nirmala Sitharaman proposed slashing import duty on mobile phones, chargers, and some components used for manufacturing handsets.

She stated that in the interest of consumers, the basic customs duty on mobile phone, mobile PCBA, and mobile charger would be reduced to 15 per cent from the earlier 20 per cent. According to market experts, Apple stands to save as much as $35 to 50 million due to the 5 per cent reduction in import duty on mobile phones, and there could be a Rs 2,000-4,000 reduction in prices of premium handsets, including iPhone Pro and Google Pixel, if the companies decide to pass on the benefit of the levy cut to customers. Neil Shah, VP for Research at Counterpoint Research, mentioned that Apple could save almost 5 per cent on the import price, leading to potential savings of $35-50 million (Rs 250-418 crore) until they start manufacturing the Pro models completely.

CyberMedia Research VP, Prabhu Ram, suggested that Apple is expected to be a prime beneficiary of the reduced customs duty on smartphone parts in India, potentially leading to a rationalization of prices in the 5G phone segment. Techarc chief analyst and Founder Faisal Kawoosa acknowledged the proposal to reduce the BCD on mobile charges and mobile PCBA, viewing it as a step towards making affordable 5G smartphones. Similarly, the industry body ICEA welcomed the announcement, expecting a reduction of 5 to 5.5 per cent in the price of imported mobile phones due to the reduction in customs duty.

Overall, this change in import duty has the potential to impact the pricing and availability of high-end smartphones in the Indian market, while also supporting the growth of the local manufacturing and export sectors.