New Delhi: Apple has slashed retail prices of all its iPhone models by 4% to 7.5% from July 1, as the Cupertino-based smartphone maker passed on benefits accrued from goods and services tax ( GST ) regime to consumers.According to changes in prices on the company’s website on Saturday, the priciest iPhone 7 Plus with a 256 GB storage which was billed to consumers for Rs 92,000, will now leave a smaller hole – of Rs 85,400. The iPhone 6s starting variant of 32 GB will now be available for Rs 46,900, a mark down of 6.2%.The iPhone SE, which is being made in Bengaluru by Wistron Corp, has become cheaper by atleast 4%, with prices of the 32GB model down to Rs 26,000 from the earlier Rs 27,200. The 128 GB version now comes cheaper by 6% at Rs 35,000.Industry experts said that the new prices, made on the account of GST, also factored in the basic customs duty (BCD) of 10% imposed on mobile phones that are imported into the country.One of them explained that the overall taxation on iPhones was quite high, so even with the GST rate of 12% and customs duty, the net tax ​is lower than what was being 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.The move makes the iPhone much more attractive to consumers in the Indian market who attach a significant value to the brand. The price drop would help Apple immensely in garnering share in a highly competitive Indian smartphone market, from the present levels of 2.6% in the quarter ended March 2017.

Source: Economic Times July 01, 2017 11:48 UTC