Currently, Apple produces the amazing iPhone 6 and iPhone 7 in India for many reasons. To make the phone locally available allows Apple to comply with local content regulations, which allow it to open the Apple Store in the country someday. And using the facilities of Foxconn and Wriston in India to manufacture their phones, Apple avoids an import tax that could add up to $100 to the cost of each iPhone. Apple is trying its best to keep the price of the device low to make it cheaper in a country that is the world’s second-largest smartphone market, although per capita income is very low. The issue for Apple in this developing country is that it must rely on its old models to compete with the success of Xiaomi’s “value for money” phones and the red-hot mid-range phones of Samsung.
At the start of this month, when we informed you that iPhone shipments to India had dropped by 42% during the first quarter, we also said that Apple was testing the production of its high-end models, such as the iPhone XR, in India. The buzz circulated was that the production of up to 250,000 units per month of these more expensive phones would start before the end of the year. The report also stated that most of this production, from 70% to 80%, would be exported.
The iPhone Has Only 1% Of the Smartphone Market In India
Reuter reported that Apple will start selling its high-end iPhones in Indian stores by the coming month. This will allow Apple to offer its best phones at lower prices than those currently sold in the country. The report cites an anonymous source that claims that the locally produced XS units of iPhone XS and iPhone will be available in Indian stores in August. The source has warned that Apple is still awaiting certain approvals to be granted. Neither Apple nor Foxconn would comment on the story.
Apple shipped 220,000 iPhones during the three-month period. In April, deliveries were recovered to 200,000 only during that month thanks to some special offers. But the OnePlus 7 was launched in May and the combination of high-end features at a competitive price stopped Apple’s momentum. Counterpoint The research says Apple will send 1.5 to 1.6 million iPhones in India this year, less than 1.8 million delivered in 2018. The previous year, 2017, the company sold 3.2 million units. Apple’s market share in the country has been reduced to 1%, and Rushabh Doshi, research director at tech researcher Canalys says that Apple’s local production will give the margin to play with the margins of their distributors and indirectly will give to your phones a lower price. And lower prices should lead to greater demand and an increase in the company’s market share in the country.
Production of its latest iPhone and award in India also gives Apple the chance to make a transition from some of its most important devices outside of China. This could be important if the truce in the trade war between the US and China is broken. Smartphones are believed to be at the next level of products that would face the 25% tariff that President Donald Trump has placed on Chinese imports. But India could also be targeted by the president. Just a couple of days, Trump said that the Indian tariffs on US exports are no longer acceptable. Therefore, it is entirely possible that even the US will begin to tax India’s imports.
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