We already know that Apple is assembling the iPhone SE in India. Now, Apple took one step further. Apple confirmed it would manufacture iPhone 6 and iPhone 6S in India in the next two months. Despite the Ministry of Electronics, not accepting the 15 years tax exemption for Apple, the company will still go ahead with the decision of manufacturing Apple iPhone 6 and iPhone 6s in India.
Earlier Apple sought tax exemptions from the Ministry of Electronics to assemble and repair units of Apple iPhones for 15 years. But the Union Minister of Commerce and Industry denied Apple’s requests. The reason was it will not be a feasible and fair decision considering the tax levied on other mobile manufacturers. Also, the other mobile manufacturers are following the same regulation without any extra privileges.
Apple will start manufacturing iPhone 6 and iPhone 6s in two months
At present, the smartphone manufacturers in India have the benefit of special incentive packages from MSIPS and Electronic Development Fund. Apple will start the production process in less than two months, by the end of May. The iPhone SE was supposed to go into production by now, but it is pushed back for a couple of months.
They will start the production in Bengaluru facility, and Apple’s manufacturing partner Wistron is handling it. According to a statement from Apple, “We’ve been working hard to develop our operations in India. We appreciate the constructive and open dialogue we’ve had with the government about further expanding our local services.”
Apple might set up retail stores
If Apple manufactures iPhone 6 and 6s in India, the price will inevitably fall to a reasonable amount. Even if Apple doesn’t get any special tax exemption, then too the prices won’t be the same as now. At present, there is a 12.5% customs duty on smartphones in India.
If the customs duty is removed, it will dip the price by Rs 10000. We can also expect Apple to sell the Make in India iPhones by the end of this year. Trade Minister Nirmala Sitharaman said, “We will try to accommodate as much of their demands as possible, but they too appreciate and understand our limitation.” Apart from Bengaluru, Apple is also looking to set up shops in New Delhi for manufacturing the iPhone components.
Apple is negotiating with New Delhi to start the next level of productions. If Apple makes iPhone 6 and 6s in India, the price will reduce by at least $100. Apple CEO Tim Cook is in discussions with analysts, and they are also considering to set up retail stores in India.