Apple's Manufacturing in India: Impact on iPhone Prices and Availability

In recent news, Apple has announced plans to start manufacturing its smartphones in India. This move has sparked a lot of questions and speculations about the impact on the cost of iPhones and iPads, as well as the potential availability of these products in the market.

Will the Cost of iPhones and iPads Come Down?

While the immediate impact on the cost of iPhones and iPads is not expected to be drastic, there will be a noticeable drop. However, it won't bring the phones to budget price levels. You can expect a drop of anywhere between 10,000 to 15,000 Indian Rupees, primarily due to the reduction in GST (Goods and Services Tax).

Are iPhones Already Being Manufactured in India?

Yes, iPhones are currently being manufactured in India. However, the cost reduction is minimal because the import taxes do not play a significant role in the pricing. The IDC India reports that the iPhone 11 is being manufactured in India, yet there is only a minor difference in pricing compared to imported models.

Why Will Prices Go Down if iPhones Are Manufactured in India?

The main reason for the potential price reduction lies in the import tax. If a manufacturer imports a fully assembled product into India, they are required to pay an import tax as decided by the Government of India. Currently, this tax is 18%. However, if the manufacturer chooses to assemble or manufacture products in India, they can benefit from a tax reduction of up to 1% if they operate in a Special Economic Zone (SEZ).

Will We See a Reduction in iPhone Prices in India?

The answer is a definitive no. Based on past trends, the manufacturing in India has not had a significant impact on the price of iPhones. For instance, when Apple started manufacturing the iPhone SE in India in 2017, the prices remained the same until they launched their next generation model. Similarly, when Apple began manufacturing the iPhone 6, 6s, and 7 in India, the prices did not change immediately.

Historically, Apple has maintained the prices of older models, reducing them only after they became last generation smartphones. This behavior is understandable given Apple's history of good sales for older models. The Indian market, however, is highly competitive with the presence of players like OnePlus, IQOO, Xiaomi, OPPO, and others. This competition raises the question of whether Apple might reduce the prices of its current generation iPhones in the future.

Some sources suggest that Apple might reduce prices if they manufacture locally. While this is promising, it is yet to be seen if and when such a price reduction will occur. It is more likely that Apple will wait until the next generation of iPhones is launched and the current models become last generation models.

For more updates on Apple's manufacturing plans and pricing strategies in India, keep following this space.

Keywords: Apple iPhones in India, iPhone pricing, smartphone manufacturing in India