The government of India in the course of last week proceeded to hike the customs duty from 10 per cent to 15 per cent for mobile handsets. It was on Monday that prices across iPhone models were raised by Apple making it the first company to make the change in the country in relation to the new regulation. But Apple did not do the same for iPhone SE which gets assembled in the country.
There have been speculations in line with the way the Indian Apple community will be reacting to the new changes. The associate director for mobile devices and ecosystems, Tarun Pathak spoke in relation to the matter. According to him, any changes that dug deeper in the pockets of customers were not embraced quite well in most of the instances. It was not going to be any different this time around.
He proceeded to outline that business dynamics were a reality that everyone needed to conform to. Market shifts and other factors were inseparable from everyday’s trading activities and Apple shouldn’t be blamed for making its move. Apple had to react to the new changes the government put in place in order to ensure that it did not encounter losses in the long run.
The Cupertino-based iPhone maker has over the years been an industrious company that has been keen on taking advantage of all the opportunities that come its way to hit the highest notches in terms of business success. It will be seeking out to play it safe all along in the country. It is for that reason that it has plans underway to get the government to the table to discuss tax reliefs. Asides from the tax reliefs it will also be seeking to to push the government to give it incentives to make it easier for it to begin assembling more handsets in the country.
An industry analyst opined, “Apple had two choices after the customs duty hike — either to increase the prices or start assembling more in the country. Apple is currently assembling iPhone SE model at its Bengaluru facility with Wistron Corporation, its Taiwanese manufacturing partner.”