Starting April, Apple reportedly plans to begin the production of its iPhones at a Bengaluru-based plant in India.
Initially, only a couple of gadgets will be produced, but gradually the range will increase.
According to IHS, the manufacturing costs of the iPhone 6 are as follows: $236 for a 16 GB iPhone 6s Plus, $236 + $17 for a 64 GB iPhone 6s Plus, $236 + $16 for an iPhone 6s Plus with upgraded components. Taxes and shipping costs are added to this production cost, making the iPhone more expensive in some countries.
An iPhone manufactured in India will be comparatively cheaper as import and excise duties will be eliminated from the cost (representing an exact of 12 percent decrease in original price). Customers in other countries in the region will then benefit from this as well.
Apple is keen to begin production in Bengaluru. However, the Indian government is not yet yielding to the company's request for special tax incentives and other special subsidies. According to Tech Times, Nirmala Sitharman, India's commerce and industry minister, explained that India currently provides enough reasonable subsidies to smartphone manufacturers and any exception will disrupt the fairness of policy.
Apple is currently dominating the Indian smartphone market, and setting up a manufacturing plant will sink its further in the county, cementing its position. Considering this, Apple product manufacturers, Wistron and Foxconn, have started building manufacturing plants to asseble iPhone units in India.
As soon as the Indian government gives Apple a green signal, the dream of a cheap, pocket-friendly iPhone may be closer to reality.