India cuts duties for Apple: iPhone production will become cheaper
India continues to attract Apple to local manufacturing by reducing its tax burden. The country's authorities announced the cancellation of duties on circuit boards, camera modules and USB cables, which were previously subject to a 2.5 per cent import tax. The move will make it more cost-effective to produce iPhones domestically.
What has changed?
- Removal of duties on key iPhone components, including PCBs and cameras
- Lower production costs for Apple and its partners such as Foxconn and Wistron
- Additional incentive to expand factories in India
Why it matters.
India has been developing a 'Make in India' initiative for several years now, aimed at attracting technology companies and localising production. Apple is actively supporting this trend by gradually increasing iPhone assembly in the country.
Previously, the Indian government has already reduced taxes on some components, but now the benefits have been extended. This will increase the competitiveness of local factories and help Apple reduce its dependence on China.
What's next.
The duty cuts are another step towards making India one of the key iPhone manufacturing centres. Apple already manufactures the iPhone 15 there, and may move assembly of more expensive models to the country in the future.
Source: Reuters
