Ever since Indian Prime Minister Narendra Modi initiated ‘Make in India’ vision many companies have invested heavily in India. Big technology companies have set up production lines in India. The latest name to join this list is American technology giant Apple. As reports suggest, Apple is planning to set up an assembly line of its iPhone 6s in India. The city that the company has chosen is India’s IT hub of Bengaluru. Well, it is not exactly Apple who would be monitoring this production line. Wistron Corp, one of major parts suppliers to Apple will be producing iPhone 6s at its Bengaluru facility.
Wistron Corp recently got the green signal from Apple headquarters to assemble iPhone 6s in India. If sources are believed, Wistron will start the production of iPhone 6s in the next couple of months. The company has reportedly started a trial run of iPhone 6s assembly process. It is unclear whether iPhone 6s Plus (5.5-inch model) will be produced at this facility in Bengaluru. Media reports suggest that Wistron Corp is instead planning to produce 4.7-inch iPhone 6s model at this facility. The 5.5-inch model is not likely to be produced at this production facility.
The move that Apple is planning to assemble iPhones in India comes after Indian government steadily raised customs duty. Price of imported phones has gone up due to 10%-20% rise in customs duties. It is due to this rise in customs duty that cost of iPhones has shot up thrice in last half year. Mobile phone components are imported from China and then assembled at facilities across India. However, this is not going to bring down the cost of iPhone because of the high customs duty on components.
Apple is looking for local Indian companies to produce components for its iPhones. Apple has been negotiating for a very long time with Indian authorities to lower the duties on components. The company believes that talks will have a positive outcome. Apple believes that if iPhone is assembled in India, it can keep its price lower.
The ‘Make in India’ move by Indian government is pushing more and more foreign tech brands to set up facilities in India. This is likely to reduce the prices of mobile phones as components will be made locally.