According to a report, Apple has already begun the test production of the iPhone 6s Plus in its Bengaluru unit of its contract manufacturer Wistron, and the commercial production is expected to start in a couple of weeks.
Apple will soon start assembling iPhone 6s Plus in its Bengaluru plant in Karnataka, said a media report. 2 senior industry executives think this will eventually lead to a 5% - 7% price drop, allowing it to compete directly with OnePlus and Samsung.
Apple shares are up 0.4% to $174.87. It has set up a new assembly for the production of iPhone 6s Plus. Earlier in January we also reported that Wistron may use the new facility to expand to manufacturing the iPhone 6s. The Indian government has raised the basic customs duty on smartphones to 20 per cent over the last few months, and as a result, Apple iPhones witnessed a 6-7 per cent hike except for the iPhone SE. In India, the iPhone SE can be bought for as low as Rs 18,799, while the iPhone 6S Plus can be found at Rs 37,999 on ecommerce platforms like Amazon India.
So even if Apple assembles iPhones in India, the customs duty on imported components will keep the expenses high, according to IBTimes. However, in the refurbished smartphone market, Apple is now the king, and India is one of those regions where such category of mobile phones are sold in massive volumes.
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In April, the finance ministry, as part of its "make in India" initiative and to encourage local components sourcing, increased the taxes on camera modules, connectors and PCBs (printed circuit boards), a major part of the mobile, which houses the processor, RAM, storage and more.
Another way for Apple to cut additional costs would be to make parts and packaging all within India as well.
In India, the nearly three-year-old iPhone 6S Plus remains popular as it costs less than other flagships like the iPhone 8 or X but has numerous same core features such as a 5.5-inch retina display, a 12-megapixel camera, and 4K video recording. The iPhone SE since its launch in India over two years ago has steadily seen a great response in India.
Before you get excited though, it should be kept in mind that this change might not happen immediately since Wistron is just getting started, meaning Chinese imports will continue for the moment.
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