Apple starts manufacturing iPhone XR in India

By Xite - October 15, 2019
With the production of iPhone XR locally, Apple aims to reduce 20 per cent in import duty. However, whether moving the production to India will have any effect on the prices is not yet known.

Moving up its manufacturing value chain in India, Apple has finally begun mass production of its iPhone XR model at Foxconn facility near Chennai. Earlier, the Cupertino-based iPhone maker manufactured older models such as iPhone 6S, iPhone SE and assembled iPhone 7 locally in India.

According to IHS Markit’s Smartphone Model Market Tracker report, Apple iPhone XR is also the most shipped model in H1 2019. The company shipped 26.9 million iPhone XR units worldwide.

Apple that largely assembles most of its iPhones in China has gradually started shifting its manufacturing units to other countries post the US-China trade war. Apart from manufacturing iPhone XR, Apple will also assemble its latest flagship iPhones which will be in sync with worldwide release schedules. With this move, Apple aims to make India as one of its key global production hubs. The company would also save nearly 20 per cent in import duty by locally manufacturing iPhone XR.

However, there is no official statement yet on the reduction of prices post local manufacturing. Apple is also reported to have plans in place to manufacture its latest iPhone 11 series at the Chennai-based plant. 

In August, Apple announced that the company will soon open online exclusive stores in India, which will be followed by a brick and mortar store in Mumbai. This comes after Narendra Modi led union cabinet eased the 30 per cent local sourcing norm in single-brand retail to boost economic growth.

With the online exclusive Apple stores, Indian consumers will be able to purchase Apple devices along with the benefits of offers and discounts.

Apple now has two manufacturing facilities in India including the Chennai one and the other in Bengaluru in association with Taiwan’s Wistron.

The iPhone shipments grew 19 per cent (YoY) in India in its last reported quarter. And thanks to the huge promotional offers, especially on iPhone XR, Apple regained top position in the premium smartphone segment in India in the second quarter (Q2) this year, said a report by Counterpoint Research.

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