Budget 2026 Highlights: Will iPhone, Samsung Galaxy & Other Smartphones Get Cheaper After Customs Duty Cuts

Smartphone buyers in India following the Union Budget 2026 now have a clearer sense of how device prices may move in the coming months. After the Finance minister announced a rationalisation of customs duties, smartphones from brands such as Apple iPhone, Samsung Galaxy, Vivo and others are expected to become relatively more affordable over time.

Union Budget 2026 Highlights: Will iPhone, Samsung Galaxy, Vivo & Other Smartphones' Prices Go Down?

The Budget introduces several tax and duty changes aimed at lowering the overall cost of smartphones, both imported and domestically manufactured. These measures are part of a broader effort to support consumers while strengthening India's electronics manufacturing ecosystem.

Import Duty Cut on Smartphones Carried by International Travellers

One of the most consumer-facing announcements is the reduction in customs duty on goods carried as personal baggage by international travellers. The duty has been lowered from 20 percent to 10 percent. This change directly benefits imported smartphones, especially premium devices such as Apple iPhones and high-end Samsung Galaxy models, making them cheaper for buyers who purchase phones abroad and bring them into India.

Lower Customs Duty on Batteries, Capital Goods and Smartphone Manufacturing Inputs

The government has also reduced customs duties on key inputs used in smartphone manufacturing. Batteries and certain capital goods required for setting up and operating production facilities will now attract lower levies. These changes reduce input costs for manufacturers in India, supporting domestic production and improving the long-term potential for lower smartphone prices in the local market.

How Manufacturing Cost Cuts May Affect Smartphone Prices

Lower duties on components and machinery can help manufacturers reduce production expenses over time. While companies may not immediately pass on the full benefit to consumers, the cost savings could gradually reflect in retail prices, particularly for mid-range and mass-market smartphones assembled in India.

Despite the duty reductions announced in the Union Budget 2026, several global factors could prevent sharp price drops. A worldwide shortage of memory chips continues due to high demand from AI data centres and cloud infrastructure. At the same time, modern smartphones increasingly rely on advanced AI processors, larger RAM capacities and more powerful hardware, all of which raise component costs.

"Alongside the expanded ₹40,000 crore Electronics Components Manufacturing Scheme, this Budget strengthens the domestic electronics and semiconductor supply chain in a meaningful way. For hardware and deep-engineering startups, this creates the foundation to design and build globally competitive technology in India, with greater control over critical components rather than relying entirely on imported ecosystems," said Gokul NA Founder, CynLr.

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