India’s 2025 Union Budget has not only removed income tax for those earning upto Rs. 12 Lakhs per annum, but also tried to make smartphones cheaper. The 2025’s budget has removed import duties on key smartphone components like PCBAs, camera modules, and USB cables. This move is expected to boost local manufacturing and reduce costs for brands like Apple, Xiaomi, and Samsung. But will it actually make smartphones cheaper? Let’s try to find out.
Will Smartphone Prices Drop?
While the removal of 2.5% import duty lowers manufacturing costs, it doesn’t guarantee a direct price drop for consumers. Here’s why:
- Lower Production Costs: Manufacturers will save money, but brands might retain profits rather than reduce prices. They might focus on improving their profits more than reducing the prices of their smartphones.
- Premium Phones May Benefit More: High-end brands like Apple and Samsung could pass on savings, but budget brands already rely on local sourcing.
- Currency & Market Factors: Factors like rupee fluctuations, global component prices, and competition will also impact final pricing. Like for example the expected Trade War due to President Trump’s major decisions.
Which Phones Might Get Cheaper?
- iPhones & Premium Devices: Apple has been increasing local production, so future iPhones can expect to see price cuts.
- Mid-Range & Budget Phones: Xiaomi, Realme, and Samsung may adjust pricing, but don’t expect big price cut.
- New Launches vs. Existing Models: Upcoming models may be priced lower, while existing stock will remain unaffected.
To conclude, while smartphone prices may not drop overnight, this move strengthens India’s position in mobile manufacturing, thus encouraging brands to reduce costs in the long run. Budget-conscious customers should wait for upcoming smartphone launches to see how this move will affect their smartphone choices.