India is cutting back its import duty on iPhones and also selected iPhone components, meaning it will cost Apple less to bring in completed phones, and to make new ones locally.
Mumbai, India
At least one reason that Apple even began producing iPhones in India was because locally-made devices have avoided the country's 20% import tax. In recent years, iPhone manufacturing in India has increased radically, with the region specifically benefitting from Apple's moves to reduce its dependency on China.
According to Reuters, the Indian government has now announced that its import rate will be cut to 15%. Saying that it is in the "interest of consumers," the government is reducing the import tax on smartphones, mobile phone chargers, and printed circuit board assembly (PCBA).
Despite the growth of manufacturing in India, Apple still imports many finished iPhones. It's estimated that the 5% tax cut will mean Apple earning between $35 million and $50 million more per year.
The move to cut this particular import duty began back in January 2024. It follows a decision by the Indian government in 2023 that initially led to imports of devices, such as laptops and tablets, being limited in order to boost local manufacturing.
India later reversed that decision following pressure from technology firms including Apple.