India Raised Tariffs On Mobile Phones From 10 Per Cent To 15 Per Cent

- Dec 18, 2017-

According to foreign media reports, India has raised tariffs on mobile phones from 10 per cent to 15 per cent, hurting apple, which is heavily dependent on imports in the Indian market.

Finance recently issued a circular, determine the import tariffs of improve cell phones and other electronic products, including mobile phone tariffs up to 15%, from 10% before the TV and microwave oven import tariffs to 20%, from 10% before video and photo equipment import tariff, like mobile phones, also rise to 15% from 10% before.

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India has raised its mobile phone tariffs, with apple most injured. Although apple has started assembly iPhone SE in India, by the partners wistron factory assembly in bangalore, but apple iPhone sales in India, most still rely on imports. Tarun Pathak, deputy director of mobile devices and ecology at Counterpoint Research, a market Research firm, says that 88 per cent of iphones sold in India are imported.

After India raised its import tariffs, apple had only two options, one to make and assemble the iPhone in India. If it is not assembled in India, apple can only raise the price of the iPhone, which is very bad for its development in the Indian market, which could lead to a number of potential consumers switching to other brands.

Apple has also been preparing to assemble iphones in India, but has offered India a number of preferential tax incentives for raw materials and related equipment. Apple has also had several consultations with India, and India wants to treat all companies equally without offering discounts.

India's import duties on electronics such as mobile phones may be motivated by Indian manufacturing considerations and, of course, for the development of India's mobile phone industry. Chairman and founder of the Indian cellular association Pankaj Mohindroo, said India's mobile phone industry is facing global competition, they do not seek the protection of the long-term, but in the short term measures are very necessary.


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