iPhone To Get Cheaper? India Proposes To Cut Import Duties On “High-End Phones” As Part Of US Trade Deal

As part of a trade deal with the US, India has proposed to reduce the import duties imposed on high-end mobile phones like the Apple iPhone, reports The Hindu BusinessLine (BL).

However, the Indian side has refused to reduce the import taxes on cheaper phones as it could endanger the domestic phone manufacturing industry. “One of the big demands made by the US is that India should revoke the 20 per cent import duties on mobile phones that it imposed over the last couple of years. In response, Indian officials said that duty cuts or elimination on high-end phones, say over ₹50,000, could be considered,” said a government official.

Washington appears to be unhappy with the proposal and has asked for full elimination of import duties on all categories of mobile phones.

“Indian officials have tried explaining to the US that budget phones are mostly exported by China and lowering or removing import duties for that segment is only going to help Chinese manufacturers. The US, however, sells only high-end iPhones to India. So lowering duties on high-end phone would directly benefit its manufacturers,” added the official.

Advantage Apple

If India does remove the tariffs on high-end phones, it would be especially beneficial for companies like Apple which is struggling to find a foothold in one of the fastest growing smartphone markets in the world.

Apple's iPhones command a minuscule market share in India due to their extraordinarily high prices. Competitors in the premium segment like OnePlus and Samsung offer phones with similar features at much lower prices.

Phones by these companies are also fully assembled in India. Thus, unlike Apple, they avoid paying high import duties which keeps their prices low.

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