Apple raises iPhone prices by up to ₹3,210 on custom duty hike
as customs duty on smartwatches and wearables too have been hiked in the Budget. The new rates were effective from Monday.
The ‘Apple Watch Series 3’ 38mm would now be available for ₹32,380, while 42mm version will be priced at ₹34,410.
This is the second round of duty hike in the last two months.
In December, the government had raised the levy on imported smartphones to 15% (10% earlier), to boost local manufacturing.
Following the hike, US-based Apple had then raised the average prices of iPhones by 2.5%.
Finance Minister Arun Jaitley, while presenting the Union Budget 2018-19 last week, had said the customs duty on phones has been raised from 15% to 20% and on some other parts and accessories to 15%, to “intensify” domestic value addition and promote Make in India in the sector.
Market watchers are of the view that the resultant impact of the duty hike could be 3-4% on final price of imported mobile phones.
Customs duty on smartwatches and wearables has been doubled to 20%, while that on specified parts and accessories of mobile phones has gone up to 15% from the current range of 7.5-10%.
India is one of the largest mobile phone markets globally.
In the October-December 2017 quarter, overall mobile phone shipments in India grew 37%, as per Counterpoint Research data.
Smartphone shipments in the said period increased 12%, while exports of feature phones grew at a blazing 55%.