Last year, Apple started producing the iPhone SE in India to avail various tax and duty benefits. A year later, the company has now started producing iPhone 6s in the country as well with the help of its contract manufacturer Wistron.
Wistron has set up an iPhone production plant just outside of Bengaluru where it was producing the iPhone SE for Apple. It has now set up two new lines in the same facility to produce iPhone 6s. Apple had been trialing production for both, the iPhone 6 and iPhone 6s, at the Wistron facility since April. In the end, it went with the local production for the iPhone 6s because of its sales potential.
By producing iPhone 6s units locally, Apple would shield the prices of the phone from any hike in import duties and taxes. The Indian government has already hiked the import duty on smartphones by 20 percent this year alone, and with the current trade wars going on between India, the United States, and China, the import tariff is bound to go up. Thus, Apple is keen to produce its iPhones locally to at least meet the demand in India as it would shield the prices of its products from any hike in import tax and duties.
Despite producing iPhone 6s locally, Apple will have to import units of the handset for now as well until the production capacity improves. Due to this, there will be no immediate price correction on the iPhone 6s. However, once the Wistron facility is able to manufacture enough iPhone 6s units to meet the demand in India, Apple could very well reduce the price of the handset to bolster its sales.
“The made-in-India iPhone 6s will be only sold in India like iPhone SE since it will take time to scale up capacity. In fact, Apple will continue with the import of iPhone 6s until capacity improves. Hence, there will be no price correction for the locally manufactured units. The made-in-India iPhone 6s model will hit the stores soon,” an executive said.
In international markets, Apple’s iPhone X and iPhone 8 series of handsets sell like hot cakes. But since the Indian smartphone market is very price sensitive, its the company’s older models like the iPhone SE and iPhone 6 series that do extremely well. This is why Apple is focusing on producing its older models in India first.
[Via ET Tech]