According to the report reaching us from our sources, Apple may start an iPhone 6S factory in southern India in a bid to lower the price of the model. Our sources say that it may start manufacturing in Bengaluru, previously known as Bangalore in two weeks.
In setting up a local factory, the company aims at slashing Indian phone prices in response to government policies that tax foreign phones. The government of India raised tariffs on smartphones from 15% to 20% in February thus causing Apple to figure out new means of dropping its prices and yet stay competitive. According to our sources, local manufacturing could cut down the price by 5 – 7 percent if Apple manages to make all iPhone 6S Pluses sold in the Indian market domestically. If prices drop at that rate, iPhones could become as affordable as OnePlus or some Samsung phones.
Another way in which apple could cut costs is to also make parts and packaging within India. Earlier this month, the government of India announced a 10% customs duty on circuit boards, camera modules, connectors, and other parts all in an attempt to boost the local smartphone economy in the country.
In India, the iPhone 6S Plus which is almost 3years old remains the most popular device because it is cheaper than flagships such as the iPhone 8 or iPhone X and yet has many core features as a 5.5-inch retina display, a 12-megapixel camera, and 4K video recording. The iPhone 6S Plus also comes in rose gold, a discontinued color for newer iPhones. Another, older model, the iPhone SE, is also succeeding in the market because of its cheaper price, which is partly a result of being built locally.
The iPhone 6S Plus will be the second phone assembled in India, although, since it is not fully manufactured there, it will fall under certain taxes. Our sources report that Apple may add more models to production in subsequent months.
An IDC report from last year said that Apple only controlled 2% of the India smartphone market and analyst recommended that the company should focus on a “premium positioning of its smartphones.”
Apple has been reached out to for confirmation.