[ad_1]
By Malcolm Owen
Tuesday, June 26, 2018, 7:22 am PT (10:22 am ET)
Apple would have started commercial production of a second iPhone in India, with a Wistron facility manufacturing the iPhone 6 for sale in the region alongside the SE iPhone, a decision that will help Apple avoid the import duties for the second Indian model.
The mass production of the iPhone 6s began last week at the Wistron factory in Bangalore, senior industry executives have advised the Economic times. The change in manufacturing follows a test production reported of the iPhone 6s and the iPhone 6s Plus in April, with executives noting that the iPhone 6s was selected because of its potential of sale.
According to the Counterpoint research firm, it is estimated that the iPhone 6 series accounts for one-third of iPhone sales in India. In comparison, the locally made iPhone SE provides less than 15% of revenue.
Wistron, a manufacturing partner, received approval to expand its facilities in March, paving the way for the production of a new model. At the time, it was believed that the new plant on 43 acres of land would require an investment of 6.8 billion rupees ($ 105 million) from Wistron's field and facility, which would be used to the production of smartphones and the Internet of Things. bio-tech devices.
The production of the iPhone 6s in India will help Apple to avoid any change in import rights for the smartphone, in the same way that the iPhone SE has been protected against New Delhi tax increases earlier in 2018.
While the iPhone 6s Made-in-India will only be sold in India, the tax-free economy should not affect the price paid by consumers, say the executives. As it will take time for the iPhone 6s produced locally to increase, imports will continue until the production capacity improves, causing the impact of part of the offer of the iPhone 6 on the tax.
The leaders claim that Apple intends to further expand local production to further protect itself from tax increases. In December, basic tariffs for smartphones rose from 10 to 15, before rising to 20 percent in February, while in April the government imposed a 10 percent tariff on electronic components. connectors
In 2018 alone, these tax increases forced Apple to raise its prices in India by 6 to 7%.
Apple's efforts in India have been fruitful for the company, according to the details revealed in its report on the 2017 fiscal year, published in April. In India, the turnover has grown by 17% in one year and profits by 44%, but the overall revenues are far behind those of Chinese suppliers, including Xiaomi, Vivo and Oppo, which focus on the value of the smartphone market.
[ad_2]
Source link
