A few months back, when Apple CEO, Tim Cook visited India, he met Prime Minister Narendra Modi. Cook was asked to consider making iPhones in India.
Now, it appears like Apple is considering to make iPhones in the country. It is reported that Apple has asked Foxconn, its largest contract manufacturing partners to look at the possibilities of making iPhones in India within two or three years.
It seems like Apple is definitely interested in making iPhones in India. Ever since Tim Cook's visit to India, Apple appears to be thinking of doing something long term in the country.
In the meantime, we have come up with a few points of why Apple might make iPhones in India and how this move will help the company.
iPhones would become cheaper
If the iPhones are made in India, the local manufacturing will definitely allow Apple to bring its offerings quickly to the market. Also, the iPhones will be made cheaper for the Indian buyers and the nation might turn into an export hub, claim the market analysts.
Necessity to boost sales in India
Apple is facing a necessity to boost the sales of iPhones in India, which is the fastest growing smartphone market in the world as the U.S. and China markets are slowing down.
Apple plans to open its own stores
Apple is in plans to open its own stores in India. The company considers that its important to have wholly owned stores and setting new service standards in the country to win the customers.
Local manufacturing is beneficial
Indian is offering differential duty structures for the companies that are making phones in the country. This will make those devices cheaper than the rest that is imported. Eventually, the tax benefit can be availed by the company and buyers.
Challenges are to remain
Of course, there will be many challenges when it comes to making iPhones in India. Apple plans to entail higher investments and advanced technology to make its devices in comparison to the native brands that are making their devices in the country.
Apple to reduce gap between iPhones in India
Given that the iPhone 7 and 7 Plus will be launched in India on October 7, it is clear that Apple is planning to reduce the gap between the iPhone 6s and iPhone 7 in the country as its popularity is increasing.
Apple's sales increased in India
In the first quarter of this year that ended in March 2016, the sales of iPhones in India increased to 76% that is faster than most of its key markets. Also, the revenue from the local operations increased by 38%.