Apple is getting ready to start manufacturing its iPhones in India. We heard previously that Apple would be making the iPhone SE in India. Now, Apple has decided to manufacture some more models of the device in India; it will also be making the iPhone 6 and iPhone 6S in India.
Impact on Pricing and Market Dynamics
Apple’s iPhones have previously been expensive in India due to import taxes, so the handsets being manufactured in the country should bring down the price. This move is expected to make iPhones more accessible to a larger segment of the Indian population, which has traditionally been price-sensitive. By reducing the cost of production and avoiding hefty import duties, Apple can offer its devices at more competitive prices. This could potentially increase its market share in India, a market dominated by Android smartphones from companies like Samsung, Xiaomi, and OnePlus.
Moreover, the local manufacturing initiative aligns with the Indian government’s “Make in India” campaign, which aims to boost local manufacturing and create jobs. By setting up production facilities in India, Apple is not only complying with local regulations but also contributing to the country’s economic growth.
Strategic Benefits for Apple
Apple previously decided to manufacture its smartphones in India to adhere to the country’s rules about a percentage of devices sold in the country being made there. This regulatory compliance is crucial for Apple to expand its retail presence in India. The Indian government mandates that foreign companies must source at least 30% of their products locally if they wish to open their own branded stores. By manufacturing iPhones locally, Apple can meet this requirement and potentially open more Apple Stores across the country.
Additionally, local manufacturing can help Apple mitigate risks associated with global supply chain disruptions. By diversifying its production locations, Apple can ensure a more stable supply of its products. This is particularly important in the current global scenario, where geopolitical tensions and trade wars can impact international trade.
Furthermore, manufacturing in India allows Apple to tap into the skilled labor force available in the country. India has a growing pool of engineers and technicians who can contribute to the production process, ensuring high-quality standards are maintained.
Future Prospects and Challenges
While the move to manufacture iPhones in India is a significant step, it is not without challenges. Setting up production facilities requires substantial investment in infrastructure, technology, and training. Apple will need to ensure that its Indian manufacturing units meet the same quality standards as its other global facilities. This involves rigorous quality control measures and continuous monitoring.
Another challenge is the competitive landscape in India. While local manufacturing can help reduce prices, Apple still faces stiff competition from other smartphone manufacturers who offer feature-rich devices at lower price points. To succeed, Apple will need to focus on offering value-added services and creating a strong brand presence.
In conclusion, Apple’s decision to manufacture iPhones in India is a strategic move that offers multiple benefits, including reduced costs, regulatory compliance, and risk mitigation. However, the company will need to navigate various challenges to fully capitalize on this opportunity. As Apple continues to expand its footprint in India, it will be interesting to see how this move impacts the overall smartphone market in the country.
Source The Next Web
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