GST Cheer: Apple Slashes iPhone, Mac Prices In India

Technology giant Apple has slashed prices of products, including iPhone, iPad and Mac, in India from July 1, as it looks to pass on the benefits accrued from the recently rolled out GST to customers.

The iPhone 7 Plus (256GB version) - the most premium device in Apple's smartphone portfolio - will be available at Rs 85,400. This is Rs 6,600 cheaper than the earlier price tag of Rs 92,000.

Similarly, price of iPhone SE (128GB) has been reduced by Rs 2,200 to Rs 35,000.

The new prices listed on the company's website is up to 7.2 percent lower than previous iPhone prices.

The 12.9-inch iPad Pro (512GB) will see its price coming down from over Rs 1 lakh to Rs 97,000.

Apple declined to comment on whether the price reduction was on account of GST, which will see smartphones being taxed at 12 percent as compared to an earlier range of 8-18 percent depending on the states.

Interestingly, the government has also introduced a 10 percent basic customs duty on mobile phones and certain parts, in a bid to promote domestic manufacturing.

However, domestic players like Micromax and Lava are unlikely to revise their prices after GST implementation.

India is an important market for Apple and this move could help the U.S.-based firm further consolidate its position here.

According to industry estimates, Apple has a 44 percent share of the premium market ($400 and above), while rival Samsung had 41 percent share in the January-March 2017 quarter. Other players in the category include the likes of OnePlus, LG, Sony and HTC.

Apple's revenue grew more than 20 percent in India in the quarter ended March 2017.

Acknowledging that Apple is "underpenetrated" in India, CEO Tim Cook has said the U.S. tech giant is strengthening its local presence in the country and is optimistic about its future given the fast-growing economy and improving 4G network infrastructure in the country.