“India has increased the import tax on dozens of electronic products such as mobile phones and television sets, a government statement said, to help curb supplies from overseas and build up the domestic industry,” Manoj Kumar and Aditya Kalra report for Reuters. “The rise in tax from 10 percent to 15 percent on handsets will make imports of phones – including most of Apple’s iPhone models – more expensive at a time the company’s revenue growth is slowing in India’s $10 billion smartphone market.”
“Eight out of 10 phones sold in 2017 have been made locally, data from Counterpoint Research showed. Samsung Electronics assembles in India most of the handsets it sells in the country,” Kumar and Kalra report. “Apple currently only assembles its iPhone SE models in India and imports its others.”
“Tarun Pathak, an associate director at Counterpoint Research, said the government’s new tax notification, announced late on Thursday, will impact mobile phones companies heavily dependent on imports,” Kumar and Kalra report. “‘It will impact Apple the most as the company imports 88 percent of its devices into India,’ he said. ‘Either this will lead to increase in iPhone prices or force Apple to start assembling more in India.'”
Read more in the full article here.
MacDailyNews Take: Expect Apple’s assembly partners to increase assembly in India as the country is of utmost importance for Apple’s continued growth.
SEE ALSO:
Apple slashes prices of iPhone 7, iPhone 7 plus, iPhone 6s in India – September 14, 2017
Apple seeks tax breaks for suppliers to make iPhones in India – August 1, 2017
Indian Prime Minister Modi meets with Apple CEO Cook ahead of President Trump today – June 26, 2017
Apple broadens their iPhone attack in India, the world’s second biggest mobile market – June 22, 2017
Apple is making old iPhones new again to win India – June 12, 201
Apple again asks Indian government to allow sale of certified refurbished iPhones in India – February 6, 2017
Indian IT minister says Apple plans to make iPhones in Bengaluru – February 3, 2017
Apple nears deal to manufacture products in India – January 25, 2017
Apple is ready to make iPhones in India, for a price – January 20, 2017
India to consider Apple request for tax breaks and policy exemptions with ‘open mind’ – January 18, 2017
Apple is horse-trading mightily with India – January 4, 2017
Shooting themselves in the foot.
*slow clap*
Taking a cue from Trump, this is part of the “Make India Great Again” campaign over there. Protectionism begets protectionism. It’s as predictable as sunrise.