“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.
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