April 26, 2018

Apple begins iPhone 6s production in India — Economic Times

14 April 2018, 03:04 | Lena Norman

'Make in India': iPhone 6s production to begin in few weeks; will witness lower prices

Apple phones in India

Apple's goal is to meet government requirements necessary to reduce the price of iPhones within India.

Following up on a January report that Apple planned to produce affordable iPhone 6s models at a new production facility in Bengaluru, India, the country's Economic Times said today that Apple is trialing iPhone 6s Plus production, with plans to begin domestic manufacturing in two weeks.

Apart from Wistron, Apple has added Finland-based Salcomp's facility in Tamil Nadu and Chinabased Shenzhen YUTO Packaging Technology plant in Bengaluru for global sourcing. The Economic Times claims that it's set up a new assembly line which will be up and ready within the next couple of weeks.

By manufacturing locally, this would help Apple cut prices by 5-7 percent, according to the report, if the company were to make all iPhone 6S Pluses sold in the Indian market domestically. Competitors OnePlus and Samsung also produce phones in India. This is done to boost the local smartphone economy in the country.

Once local capacity rises, the costs should get corrected as Apple won't be dependent on Chinese imports.

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Emails sent by ET to Apple India and Wistron did not elicit any response as of \Thursday. Which, if true, could bring down the price of the iPhone to the mid-budget segment.

Apple's iPhone SE models are already being manufactured at the Winstron plant, but account only for less than 15 per cent of the company's overall sales in India.

So even if Apple assembles iPhones in India, the customs duty on imported components will keep the expenses high, according to IBTimes.

Meanwhile, Apple has expanded local sourcing initiative to two more partners in India, which now includes chargers, adapters and packaging boxes.

During the declaration of the Union Budget for the year, the government imposed a ten percent customs duty hike on components like printed circuit boards populated with memory and chips, camera modules and connectors.

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