As the production of iPhone increases in India, many people expect a major price drop. But as India is at its nascent stage of production, will that actually happen?
As of 27th August 2020, the latest generations of the Apple iPhone SE as well as the much anticipated iPhone 11 series are being manufactured in India. While the other model is the iPhone XR. Apple’s Indian counterparts as well as partners, Foxconn and Wistron are now manufacturing and assembling the iPhones at their manufacturing houses.
The achievement of manufacturing the spectacular iPhone which is ever rising its global demand, in India, is quite a power move.
This also contributes to the “Make in India” initiative.
However, this is seemingly gaining importance as one of the largest festivals of India approaches our doorsteps – Diwali. Electronic sales are expected to go high during Diwali Season. But the main question that remains in every Indian’s heart is, “Will the iPhone now cost any cheaper?”
Sadly it won’t and the iPhone will maintain its usual high price. This is because Apple mainly follows a global pricing strategy. That is how the iPhone rates are fixed globally . They usually never localize the prices for different World Markets.
“Then what is the use?” You may ask. Well, this means that the “Made in India” iPhones will grant you insurance against any spike in prices. This disheartening spike is usually caused due to the Custom Duty Rates’ fluctuations. This fluctuation was very prominent a few months ago as well.
Along with that, a lot of us have very little idea about the iPhone production. The actual type of manufacturing and the method it uses, the real capacity of assembling it, etc is pretty unknown to all. Since India is at its nascent stage of iPhone production and Apple, it stills relies on Imports from China for now. Due to the ongoing pandemic, there has been a significant gap in communication. However, it is certainly confirmed so far that the “Made in India” units will be hitting the shelves this Diwali 2020. (Source: News18)
THE REAL ADVANTAGE
But not everything is mediocre as India now slowly emerges as a Major Production and Manufacturing Hub. Due to the ongoing USA-China trade wars and due to the pandemic, A lot of global companies are now scrambling to shift their manufacturing plants elsewhere. Since India boasts of cheap labor, massive manpower and with the current incentives announced, A lot of global chains are now tempted to shift their bases to India.
As India has already begun nascent but significant production of Apple products, a potentially bright future for the Indian economy is seen. This also means that India can slowly emerge as a Global Tech Giant in terms of production.
The global manufacturers also trying to shift to India comes at a graceful hour. As India will most probably face its first economic recession after 40 years due to the Pandemic. The interests and moving of global manufacturers towards India could be a major saving grace for the Indian Economy. If the Indian Economy is saved, it also means that India won’t slip into recession. It could also mean that the Common Man’s life won’t have to face any bumpy roads.