Widening the portfolio of “Made in India” products, Cupertino-based tech giant Apple has now started manufacturing iPhone 7 in India, in addition to iPhone 6s and iPhone SE – and the move is likely to bring down the cost of the smartphone in India.
2018 has been a downslide year for Apple’s global performance, in fact, it is the weakest sales year since 2014 – including a sink of 1.2 percent in India last year. Hence, Apple is turning towards revival mode, and has been revamping its manufacturing, management and sales strategies – one of which includes making India as a manufacturing and export hub. With the US-China trade war in the backdrop, making iPhones in India will significantly cut down the manufacturing costs compared to importing it; and it will provide the tech giant partial independence from relying on the Chinese.
Hence, adding to the already-on “Made in India” portfolio, Apple has started manufacturing the iPhone 7 model in India since beginning of March, in addition to iPhone SE and iPhone 6s. The locally-made iPhones will be manufactured by the same Taiwanese contract manufacturer Wistron, which makes iPhone SE and 6s models out of its plant on the outskirts of Bengaluru. Hence, the cost of manufacturing iPhone 7 will be free of the excise duties and taxes levied from imported smartphones.
But, people aware of the matter believe that iPhone 7 are unlikely to get cheaper, and the margins will rather be channelized by Apple to market and sell its product more aggressively. So the local manufacturing of iPhone 7 is not expected to drive Apple’s sales up in 2019, but it is more of a test for making segment for high-end Apple phones”. It can also be seen as a preparation to make iPhone 7, an entry-level Apple device in India, as the iPhone 6 and iPhone 6s will eventually be phased out this year.