Apple to start making iPhones in India


Apple iPhone sales are cooling off in China with local competitors rising and the U.S. and European markets seem to have reached smartphone saturation, so Apple is turning its eyes towards one of the biggest and most underdeveloped phone markets currently: India.

After months of negotiations with the Indian government, Apple is finally ready to start making iPhones in the world's second most populous nation.

Apple's Taiwanese manufacturing partner Wistron will start making iPhone 6 and iPhone 6s within 4 to 6 weeks at a plant in Bangalore, and it will also add the iPhone SE to the mix within a three-month time frame.

"Almost all preparations have been done for launching Appleā€™s first phase project in Bangalore through Wistron," an Indian official confirmed to the Wall Street Journal.

Why is Apple moving manufacturing to India, though? The reason is indeed practical: Apple iPhones are currently simply too expensive for Indians, a potentially huge market for Apple. Manufacturing locally would allow cutting as much as $100 off the price of iPhones, a lot of it due to import taxes in India.

Apple has sought some heavy tax breaks in exchange, but negotiations with the Indian government have been tough and the unofficial information is that the government has not yet accepted most of Apple's demands.

"We will try to accommodate as much of their demands as possible, but they too appreciate and understand our limitations," an official working closely with Indian Prime Minister Narendra Modi said.

Currently, Apple has a meager 5% market share in India.

source: WSJ

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39 Comments

1. Tyrion_Lannister unregistered

"Manufacturing locally would allow cutting as much as $100 off the price of iPhones, a lot of it due to import taxes in India." Is that a joke! iPhone 7+ 32 GB costs 1100$ in India. Cutting 100$ won't change anything and it will still be much more expensive than other countries. Manufacturing locally should technically make the price lower than the price in US, since labour in India is pretty much as cheap as China. But those greedy bastards can't live without the heavy margins.

5. pixelated

Posts: 108; Member since: May 03, 2015

Well, iPhone 7 32GB is priced around $800 only.

8. Tyrion_Lannister unregistered

Yeah, but even that will cost more than the price in US after the $100 discount. It should cost less, not more.

43. Master_Oogway

Posts: 104; Member since: Oct 06, 2016

Do you think that the US price is just $649 as shown in their website???? There's additional $70 to $80 sales tax added to that price which you have seen on Apple.com. Yes it is overpriced but with not such a great difference. Apple mainly overcharges in their upper end variants of iPhones (128gb and 256gb)

10. Victor.H

Posts: 1055; Member since: May 27, 2011

It's a pity that everyone is forced to buy iPhones or face jail time. :(

14. phonearenarocks

Posts: 606; Member since: Mar 26, 2015

Epic Lol! So funny and such a pity that even the authors who are supposed to be neutral minded have affinity towards a brand.

19. Tyrion_Lannister unregistered

I'm just stating facts here. It should be cheaper, yet it's not. And yes, there are a lot of people in India who would rob a bank or literally sell a kidney to buy iPhone, just because they like to show off. For me it doesn't affect much since I'm not tied under their ecosystem. The bias and Apple justification is clear in your comment.

28. trojan_horse

Posts: 5868; Member since: May 06, 2016

Wow, I usually see PA users getting owned by other users .. But I rarely see a PA author getting owned by a use... Lulz. Well done Tyrion.

31. Victor.H

Posts: 1055; Member since: May 27, 2011

Why 'should' it be cheaper, though? By a similar token, Ferraris 'should' be cheaper, too. By the way, I am on your side of the fence with the wishes :)

32. Tyrion_Lannister unregistered

"Ferraris should be cheaper too" is a complete different notion. This is more like: Ferrari 488 spider costs $250k in a country after importing. Why is it costing $300k in the country its getting manufactured in? Here's the thing. The cost to make the iPhone is going to be approximately the same in India and China. However, the ones that go to US after shipping and import duty are still cheaper than the ones getting sold in the very country they are manufactured in. This raises a few eyebrows. I thought I got that point carried pretty well in the OP. Not sure how you missed it.I am perfectly fine with iPhone costing more than other phones, as long as it's consistent across the globe.

22. SmartPhoneMobiles

Posts: 176; Member since: Oct 16, 2016

Soon it might be in near future

37. willard12 unregistered

Buying a phone of a different brand is only a criminal act upon assuming a position as a writer or editor at Phonearena. However, it is nice of PA to allow an amnesty period to switch to iphone.

11. phonearenarocks

Posts: 606; Member since: Mar 26, 2015

Well! You told what my heart has been shouting for years. Except in USA, iPhone is over priced all over the world.

26. yyzamin

Posts: 382; Member since: Aug 26, 2015

Same price as Google Pixel and any current Samsung flagship in Australia...

20. whatev

Posts: 2193; Member since: Oct 28, 2015

Yet you buy apple devices or at least you want people to believe that, how incoherent a person can be? Look above for an example

30. Tyrion_Lannister unregistered

What do you mean? I don't buy Apple products. The only Apple product I have ever bought is an iPad air 2 which was fairly cheap here, and also blew all other tablets out of water. I will never buy an iPhone, nor will suggest anyone to waste their money on. You don't even know what incoherence is, do you. Both my comments stand for the same thing. It should have been cheaper.

36. whatev

Posts: 2193; Member since: Oct 28, 2015

Well I don't think that buying a product from a company you don't like or that you think is greedy can be a coherent action, it's like I hate pizza but I'd buy one if I find a cheap one... 0___o ?!?!? I don't understand either why are whining for the pricing of apple products in India which will be cheaper according to the news, when you have "wasted" your money on an iPad Air 2, which according to your logic must be an overpriced tablet even at discount. I don't know about you, but I find all of this so contradictory, I think you should quietly leave the comment section and stop dragging yourself as you're doing on every article, I still remember your ramblings on the new iPad 9.7 article, you're delusional AF

38. Tyrion_Lannister unregistered

The iPad air 2 was an amazing value for money. I got it for $550 for the 64GB variant, which was about the same price as the one in US. Do you have a brain? All i'm saying is that if they manufacture in India, the price in India should be at least equal to, if not less than the price in US since the price in US considers the import duty and shipping charges, which won't be there in Indian unit due to local manufacturing. Is it too hard to comprehend for you? Or are you too stupid to still not understand it? Give me one reason why iPhone should still cost more in India compared to US even after local manufacturing?

39. whatev

Posts: 2193; Member since: Oct 28, 2015

Do you have any idea how the market works there? Do you know that in many Asian countries governments are protective over domestic companies and then charge high taxes to foreign companies? That same logic you're talking about should be applied to China where everything is manufactured, but guess what? It doesn't happen even with other android oems that are not Chinese, in china you would find an iPhone 200$ more expensive than in USA nevertheless people there like the brand and MANY buy the iPhone because they're willing to pay the premium price, the same applies to Samsung which is not Chinese, the reason why the prices are high is just to favor local brands and increase their sales on the domestic market, do you have a brain? Or you're too stupid to understand that? You're just rambling because you hate apple and you're angry because it is the most successful company now and even with this crazy pricing politics (as you might think) they will still be successful because many people in those countries want an apple product

41. Tyrion_Lannister unregistered

I know how the market works here. The duty applies to only the products that are imported. India and China have very different laws. Are you gonna teach me about the laws of my own country? LOL.

40. kerginaldo17 unregistered

Also the price of the iPhone was cheap for the Chinese?

2. pixelated

Posts: 108; Member since: May 03, 2015

What's is meaning of most undeveloped phone market? Any market where iPhone share is very small is undeveloped phone market! Right?? Typical iPhoneArena

9. Victor.H

Posts: 1055; Member since: May 27, 2011

Underdeveloped refers to the fact that India has been behind in 4G LTE coverage for years and is only now starting to get faster networks.

45. pixelated

Posts: 108; Member since: May 03, 2015

What a poor defence by you. I can simply laugh at it. In last few months Indian users have adopted 4G networks at incredibly faster rate than any other country in the world. Ah! And I'm not talking about the number of smartphone users India has.....lol Victor!

3. kishore3k

Posts: 102; Member since: Mar 11, 2016

Vat - reduced 8.5% from 14.5% No double import and export duty $100 means , at least lower variant of iPhone 7 can sell here at $800 instead of $980~1000

4. Stranger

Posts: 73; Member since: Jan 19, 2017

Add on top of that the ever increasing dollar rate !

6. notfair

Posts: 716; Member since: Jan 30, 2017

they said "as much",,, when someone says as much it will never reach the upper high of that amount!

7. Papa_Ji

Posts: 828; Member since: Jun 27, 2016

Bhio or bhano...... bharat m in american company ko mut phlny do....Ye sub company bharat ky economy pr bhuat khrab aasar dalty hy...... AMERICAN COMPANYS SY BHARAT KO BCHAO....... CHINESE PEOPLE HAVE STARTED KICKING APPLE OUT OF THERE COUNTRY, NOW ITS OUR TURN... JAI HIND.

33. Tyrion_Lannister unregistered

What a moronic comment! Do you have an idea how an economy works?

13. Hasib unregistered

Apple has appetence to get the fate of Samsung Note 7. It is impossible to keep the quality by making their iPhone in such kind of country where most of the people evacuate under open sky.

* Some comments have been hidden, because they don't meet the discussions rules.

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