In a possible impact of the benefits accrued from the goods and services tax (GST) regime, Cupertino-based smartphone maker Apple has slashed retail prices of all its iPhone models by 4 per cent to 7.5 per cent from July 1.
Observers have interpreted this move as the company's decision to pass on benefits accrued from GST to customers and said that it could make the iPhone more attractive to Indian consumers.
Industry experts told the Economic Times (ET) on Saturday that the new prices, made on account of GST, also factored in basic customs duty (BCD) of 10 per cent imposed on mobile phones that are imported into the country.
One of them told ET that the overall taxation on iPhones was quite high, and so even with the GST rate of 12 per cent and customs duty tagged on, the net tax would be lower than that levied before July 1. Hence, the price cut. A source aware of the company's decision said that had the BCD not been imposed, prices could have gone down even more.
Besides the iPhone 7 and bestselling iPhone 7 Plus launched in September last year, the price cuts extend to the iPhone 6s Plus, iPhone 6s, iPhone SE, and the company's tablet range comprising the 10.5-inch iPad Pro, 12.9-inch iPad Pro, iPad and iPad mini 4, the Indian Express said in a report on Saturday.
iPhone prices tumble
Post the price cuts, the 32-GB version of the iPhone 7, which was launched at Rs 60,000 will be available at Rs 56,200. The 128 GB and 256 GB options can be bought at Rs 65,200 and Rs 74,400 respectively. The phones were originally unveiled at Rs 70,000 and Rs 80,000.
The base 32 GB model of the iPhone 7 Plus will now be available at Rs 67,300 as opposed to Rs 72,000 previously. The 128 GB version will come at Rs 76,200, while the 256 GB variant will cost Rs 85,400. Apple had unveiled the two variants at Rs 82,000, and Rs 92,000 respectively.
The iPhone 6s Plus (32GB), which was earlier Rs 60,000 can now be bought at Rs 56,100. The 128 GB model will be available at Rs 65,000, as opposed to Rs 70,000 previously.
The 32 GB and 128 GB variants of iPhone 6s will be available at Rs 46,900 and Rs 55,900 respectively. These were previously priced at Rs 50,000 and Rs 60,000.
The 32 GB and 128 GB models of the iPhone SE will be priced at Rs 26,000 and Rs 35,000 respectively, as opposed to Rs 27,200 and Rs 37,200 earlier.
Apple's new 10.5-inch iPad Pro Wi-Fi models in 64 GB, 256 GB, and 512 GB can now be bought at Rs 50,800, Rs 58,300 and Rs 73,900. The three models were launched at Rs 52,900 for the 64 GB storage variant, Rs 60,900 for the 256 GB model and Rs 76,900 for the 512 GB options respectively.
The 10.5-inch iPad Pro Wi-Fi + Cellular models now start at Rs 61,400 for the 64 GB option. The 256 GB variant can be bought at Rs 68,900 while the 512 GB variant will cost Rs 84,500. The 64 GB, 256 GB, and 512 GB models were originally launched at Rs Rs 63,900, Rs 71,900, and Rs 87,900 respectively.
Apple 12.9-inch iPad Pro 256 GB and 512 GB Wi-Fi variants were launched at Rs 73,900 and Rs 89,900 respectively. They are now available at Rs 70,900 and Rs 86,400 respectively.
The iPad Wi-Fi models in 32 GB and 128 GB variants now cost Rs 28,000 and Rs 35,700 respectively. The previous prices were Rs 28,900 and Rs 36,900 respectively. iPad (Wi-Fi + Cellular) in 32 GB and 128 GB storage options will be priced at Rs 38,600 and Rs 46,300 respectively. Earlier, they were priced at Rs 39,900 and Rs 47,900.
Apple Watch (Series 1) will be available at Rs 22,900 against the Rs 23,900 previously. Apple Watch (Series 2), which was launched at Rs 32,900 can be now bought at Rs 31,600.
The Apple Watch Nike+ and Apple Watch Edition will be available now at Rs 31,600 and Rs 1,05,700 respectively. The were unveiled at Rs 32,900 and Rs 1,10,900 respectively.
Apple's 21.5-inch iMac (2.3GHz) (Non-Retina), which was priced at Rs 90,900, will now cost Rs 90,200. The 3.0 GHz model comes at Rs 1,06,400, as opposed to Rs 1,07,900 earlier. The 3.4 GHz variant costs Rs 1,23,700 instead of Rs 1,24,900 previously.
The 27-inch iMacs are now priced at Rs 1,47,400, Rs 1,66,00, and Rs 1,90,400 respectively for the 3.4 GHz, 3.5 GHz, and 3.8 GHz models respectively. They were earlier priced at Rs 1,48,900, Rs 1,65,900, and Rs 1,89,900 respectively.
No change has been effected in MacBook Air prices. The 128 GB and 256 GB models will be available at Rs 80,900 and Rs 96,900 respectively.
The government in a notification on Saturday imposed 10 percent basic customs duty (BCD) on mobile phones and specified parts like charger, battery, wire headset, microphone and receiver, keypad and USB cable, among others.
It said that the exemption granted on BCD to other parts like Printed Circuit Board Assembly (PCBA), camera module, connectors display assemblies, touch panels assembly and vibrator motors used in mobile ringers would continue. The inputs and raw material used in the manufacture of these parts will also continue to be BCD-exempt.