Top-end iPhones to get cheaper as local assembly expands in India: Report

Chennai: Apple iPhones that are assembled by Foxconn’s local unit in the State are reportedly hitting the country’s stores come August.

The Cupertino-based giant might also reduce prices of its latest iPhones once they hit the market said Reuters reports citing sources. However, the Tamilnadu-made phones are awaiting approvals at the moment.

According to reports, iPhone XR and XS are to hit the market next month and chiefly be more affordable, as Apple will have saved on high taxes that are imposed imported products.

If found true, the top mobiles will join iPhone SE and 6S models, which are assembled in the country through Wistron Corp’s unit in Bengaluru.

“Expanding local assembly will help Apple save on high taxes levied on the import of fully-built devices, as well as meet local sourcing norms for opening its own retail stores in India,” the agency reported.

Last year, Apple CEO Tim Cook hinted that the company wants the Indian government to cut heavy duties implemented on Apple products that are sold in India.

Subsequently reports broke out that Apple will be assembling its top-end mobile phones in India.

This was said to happen from this year via the company’s locally established Foxconn unit in Sriperumbudur, near here. Reports also stated that the move could help the tech company take its “business in India to a new level”.

At that time, Tamilnadu’s Industries Minister M C Sampath, said Foxconn, would invest Rs 2500 crores (approx $356 million) to expand the plant, including investment in iPhone production.

Foxconn will manufacture about 2.5 lakh devices initially and about 70-80 per cent of the output may be exported.

Analysts state the primary reason for the price reduction is because the iPhone’s premium pricing has limited its market share to 1.2 per cent (until December 2018) against comparatively affordable Android phones such as OnePlus flagships.

Foxconn also manufactures Xiaomi devices in the country.

Export hub

Apple has started to export iPhones to some European markets from India, a significant move in the company’s efforts of making India an export hub. As per recent media reports, Apple has asked its suppliers including Wistron, Foxconn and Pegatron to look towards moving 15-30 per cent of their production to locations outside China, owing to the ongoing US-China trade war.