The Indian government’s ‘Make in India‘ initiative yielded positive results as Samsung, OPPO, and Xiaomi have expanded smartphone assembly in India rapidly in the past couple of years. iPhones in India sell at a much higher price thanks to customs duties and other taxes. This is one of the many reasons that Apple has not exactly been able to make a mark in India.
With the trade wars looming large between the US and China, Apple recently decided that it will move production outside of China. It looks like Apple is keen on moving its production to India, the world’s second-largest smartphone market.
iPhone XS and iPhone XR units are expected to be assembled at Foxconn’s local unit in India and likely to hit stores this August. But, so far, neither Apple nor Foxconn has confirmed anything.
The flagship iPhone XS starts at 99,900 INR in India whereas the iPhone XS Max goes up till 1,00,000 INR. To reach to the masses, Apple also launched the iPhone XR last year as an affordable alternative to the iPhone XS. However, at a starting price 76,900 INR, it was still on par with premium flagships from Samsung and Google. Apple recently dropped the prices on the iPhone XR to 59,900 INR in order to ramp up the sales but Chinese rivals like OnePlus and Oppo have been launching their premium devices at even lower prices.
With local manufacturing, Apple could drop the prices up to 30%. This could make the phones more accessible than before. Moreover, this move will help Apple save up on import taxes on fully built devices as well as make itself eligible for opening its own retail stores in India. The earlier report suggests that Apple said to have finalized some locations in Mumbai for its first retail store.
Furthermore, It remains to be seen how Apple will boost its presence in India tackling its pricing challenges and gain market share in the premium smartphone segment.