Smartphone Prices Set to Drop Post-Budget 2024? Here's What to Expect

The Honourable Finance Minister of India, Nirmala Sitharaman presented the Union Budget in Parliament on July 23. While everyone has been analysing the budget from a financial perspective, we take a look at the budget from a tech perspective. Since 2021, the Finance Minister has moved away from presenting the budget from paper to a digital tablet. This tablet is covered with a red case embossed with the national emblem. Besides that, we discuss, what else is changing in tech this year.

Reduction in BCD on Mobile Phones

#Budget2024:

Indian Government to reduce basic customs duty of mobile phones, mobile chargers to 15%. pic.twitter.com/G9bzma8Pz3

— Hardwire (@Hardwire_news) July 23, 2024

The Finance Minister announced a 15 per cent reduction in Basic Customs Duty (BCD) on mobile phones, Mobile Printed Circuit Board Assembly (PCBA), and mobile chargers from the existing 20 per cent. She also said that the Indian mobile industry has matured, with domestic production increasing threefold and exports of mobile phones increasing 100-fold in the last 6 years. 

What Will Be Changed?

The reduction of import duties on products such as battery covers, lenses, back covers, antennas, SIM slots/sockets, buttons, and other crucial mechanical parts of mobile phones and gadgets can significantly impact the market. Industry Analyst Abhilash Kumar anticipates an exciting sub-Rs 10,000 segment due to the launch of affordable 5G chipsets by manufacturers such as Qualcomm, MediaTek, and Unisoc. So, people who are targeting the Rs 10,000 to Rs 13,000 price segment might switch to sub-Rs 10,000 if 5G devices are available at a cheaper price. 

It would be interesting to see if smartphone makers slash the prices of their next year's launches with this new tax cut.