Apple (AAPL.US) iPhone prices in India fell by as much as 4% due to a reduction in mobile phone tariffs.

Apple (AAPL.US) has reduced the price of its iPhone series in the Indian market after the Indian government announced that the import duty on phones will be reduced from 20% to 15%, but still far higher than the price in the US, China and other markets. The iPhone SE has been reduced by about 2300 rupees (US$27.5), while the iPhone 13, 14 and 15 series have been reduced by 3000 rupees (US$35.8), and the iPhone 15 Pro and Pro Max have been reduced by up to 6000 rupees (US$71.7), with a reduction of about 3-4%. This is the first time Apple has reduced the price of its current generation Pro models in India.

Apple usually stops selling its old Pro models after the release of the new generation Pro models. According to experts quoted by the Economic Times, distributors cleared out the inventory of old Pro models through selective discounts, so the price of Pro models has not been reduced until now.

On July 23, Indian Finance Minister Nirmala Sitharaman submitted the 2024 Indian federal budget, which reduced the basic duty on phones from 20% to 15%. According to the new budget, the total duty will be 16.5% (15% basic duty and 1.5% additional duty). For phones manufactured in India, only 18% GST will be charged. According to Indian media reports, the current imported smartphones sold in India are subject to 18% GST and 22% duty.

Meanwhile, Apple's iPhone shipments in China are also declining as it faces fierce competition from domestic rivals such as Huawei and Vivo. Apple ranks sixth with a market share of 14%, down 2% from the second quarter last year. According to Canalys, Chinese companies took all the top five spots in the Asia-Pacific region for smartphone shipments in the second quarter of 2024.

In addition, Apple is reportedly working with its manufacturing partners to produce iPhone 16 Pro and iPhone 16 Pro Max in India.