As we have seen before, Apple is making every effort to establish a production facility in India to produce the existing iPhones. Manufacturing in India is the key to avoiding India’s high import taxes on foreign goods. On Thursday, the Indian IT department signed a new $1 million Wistron plant plan in India. The factory is expected to produce iPhone 8 phones, while factories such as Foxconn will produce “Made in India” iPhone XS and iPhone XS Max models.
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Currently, Apple mainly sells Indian-made iPhone SE and iPhone 6S models in India. Compared with the average wage in India, the prices of these mobile phones are still very high, but if they are added with government tariffs, the price will be nearly 40% higher. Both iPhone SE and 6S have stopped selling in several major markets.
Apple knows that if you want to increase India’s demand for iPhone, you have to produce new models in India to lower prices. India is an emerging and huge potential growth market, and the average income of Indian households will rise in the next few years when the economy is mature. However, in the original market share data, Apple’s smartphone market share fell last year, because customers favor the purchase of much cheaper Android phones. A market strategy that does not have an import tariff premium is just a step in the process of getting the iPhone to stand firm in India.
Apple profit margins are too high hence apple phone prices only suit very few Indians. Too many excellent alternative Android phones available.