Union Budget 2018 has just been announced and while there are mixed reactions from the manufacturers Apple, in particular, will likely be affected the most. There are concerns that the new announcement could jeopardize the company's plans for India as the customs duty has been increased to 20 percent from 15 percent.
If you look at the market, apart from iPhone SE all the models of Apple iPhones are imported to India and thus import duties are levied which further increases their prices. While iPhone SE is the only handset manufactured in India mainly by Wistron at a production plant in Bengaluru, it looks like Apple is considering to add another device to the Make in India initiative.
Reports state that Apple may start manufacturing iPhone 6s in India. According to Reuters, the news agency has reportedly stated that Wistron is on the verge of attaining 100 acres of land in Bengaluru. The facility that will be set up there could be used to manufacture iPhone 6s. Moreover, Apple as per the report is said to be investing around 157 million dollars to develop the site and the deal could be closed in the next few weeks.
The confirmation has been given by an unnamed source who has stated that Apple is - "likely to start assembling its iPhone 6s models in India via Wistron soon, as it looks to cut costs and diversify its production base beyond greater China".
Manufacturing iPhones in India could benefit both the company and the consumers. While the company is looking to boost up sales in the market, once the production starts in the country Apple will be able to cater to the demand more proactively and the consumers, on the other hand, will benefit from lower-priced handsets. Besides, a low-cost iPhone 6s could be the perfect device for Indian consumers where other higher versions are too expensive and iPhone SE well it is a rather small device, to say the least.
Meanwhile, after reports about sales slowdown in various European markets as well as in U.S. Apple is shifting its focus to developing countries like India and China to boost its growth. Apple's CEO Tim Cook has said that "there is a great momentum in India."