Apple Supplier Wistron to Explore iPhone 6s Assembly in India Following Plant Expansion

[MacRumors]

Apple's main iPhone manufacturer in India is closing in on a land deal in the tech hub of Bengaluru that will see the firm invest around $157 million to assemble iPhone SE and potentially iPhone 6s models on the site, according to Reuters.

Unnamed Indian government officials on Wednesday reportedly confirmed the Taiwanese contractor's intentions, which could result in its iPhone SE assembly unit taking over about 100 acres in and around the capital of the southern Indian state of Karnataka.

Wistron executives reportedly toured the area in November and met with the industries minister of Karnataka earlier this month, and a deal on the land lease could be struck in a few weeks, according to one of the officials, who spoke on condition of anonymity as they are not authorized to publicly comment on the plans.

Another source who spoke to Reuters said Apple will likely begin assembling iPhone 6s models in India soon, using Wistron's expanding manufacturing capacity in the country, as it looks to cut costs and diversify its production base beyond greater China. Launched over two years ago, the iPhone 6s is still popular in emerging markets because of its affordability relative to Apple's iPhone 7, iPhone 8, and iPhone X.

Apple sees opportunities to save on import taxes, price phones cheaper and potentially widen its customer base in India if it assembles phones locally. However last month India raised import taxes on electronic goods, which caused Apple to raise the price of most iPhone models there except for iPhone SE.

Apple has sought tax breaks and incentives from the Indian government for months as it looks to expand operations in the country, but despite some positive comments from state officials, no exceptions have yet been made for Apple.

Article Link: Apple Supplier Wistron to Explore iPhone 6s Assembly in India Following Plant Expansion

 

[GTO]

Meanwhile nothing is made in North America :-(

 

[Ishan Agarwal]

Meanwhile nothing is made in North America :-(

But you peeps still get the stuff cheaper!

 

[zz_nosa_r]

I dont’t want to sound rude, but why is apple really pushing so hard entering the Indian Market when there are other better markets to start with.

It’s expensive, India has very strict laws for foreign companies and the market is very small ( most Indians that i know prefer Android because its cheap)

iPhone sold in India are very expensive, but we should blame it to the government (taxes, duties and stuffs)

 

[acblue94]

People still buy iPhone 6’s?

 

[69Mustang]

I dont’t want to sound rude, but why is apple really pushing so hard entering the Indian Market when there are other better markets to start with.

It’s expensive, India has very strict laws for foreign companies and the market is very small ( most Indians that i know prefer Android because its cheap)

iPhone sold in India are very expensive, but we should blame it to the government (taxes, duties and stuffs)

It's pretty easy to claim there are better markets to enter. Can you lay out an argument for a better market for Apple to enter?

 

[Madhava]

If Apple really wants to gain market share in India, they should open Apple Stores in all major cities, offer Apple Care, service and also start monthly plans similar to US.

 

[69Mustang]

If Apple really wants to gain market share in India, they should open Apple Stores in all major cities, offer Apple Care, service and also start monthly plans similar to US.

Apple has been trying to open stores in India for a while now. They have to meet the "Make in India" thresholds to open stores. MiI is the reason Apple assembles SE's in India now.

 

[Madhava]

Apple has been trying to open stores in India for a while now. They have to meet the "Make in India" thresholds to open stores. MiI is the reason Apple assembles SE's in India now.

True. May be India does not yet provide the cost savings to produce all models locally compared to the sales they have.

 

[Mydel]

I think if the phone will be assembled in India will be free of lot of taxes that needs to be pay now. Thereof its win win. Apple will be able to sell cheaper in that prospective market and people will have access to more phones. Im not surprised they push India. In 10/15 years they will be as big as China.

 

[zz_nosa_r]

It's pretty easy to claim there are better markets to enter. Can you lay out an argument for a better market for Apple to enter?

Are you Indian? Don’t get offended.

There are a lot of Asian Countries. Like Thailand, Malaysia, or Vietnam or the Philippines. There are so many emerging markets that is easier to penerate. And the iphone users in these countries are very high.

 

[barkomatic]

I dont’t want to sound rude, but why is apple really pushing so hard entering the Indian Market when there are other better markets to start with.

It’s expensive, India has very strict laws for foreign companies and the market is very small ( most Indians that i know prefer Android because its cheap)

iPhone sold in India are very expensive, but we should blame it to the government (taxes, duties and stuffs)

I believe I've read elsewhere that if Apple makes iPhones in India, it can avoid import taxes if it sells them locally. If they make them in China they'll get hit with those taxes. The article stated Apple wanted to diversify it's manufacturing locations but I think that's part of it.

Hopefully, they will also start making more products in the U.S. It sounds like they are poised to do so, and I know they already make some computers here, but maybe at least 10% of iPhones and iPads sold worldwide is realistic.

 

[69Mustang]

Are you Indian? Don’t get offended.

There are a lot of Asian Countries. Like Thailand, Malaysia, or Vietnam or the Philippines. There are so many emerging markets that is easier to penerate. And the iphone users in these countries are very high.

No, I am neither Indian nor offended. I simply asked you to expound on your claim of "better markets". If the countries you listed are your examples of better markets... I'm not really sure you understand what a better market is. By no means am I an expert, but I do know basic business. Apple is going hard in India for growth. Combined, those three countries have a total population of ~200 million. Those three countries also already have Apple retail stores, Those three countries already have Apple's contract manufacturers with plants that have been there for years. According to you, those three countries already have high iPhone penetration. So where's the growth going to come from?

It's going to come from India. Apple knows this. It's why they're there.

 

[FriednTested]

Are you Indian? Don’t get offended.

There are a lot of Asian Countries. Like Thailand, Malaysia, or Vietnam or the Philippines. There are so many emerging markets that is easier to penerate. And the iphone users in these countries are very high.

It’s about the numbers bro. 66 million vs 1.35 billion. So even if 5% of Indians buy the iPhone. It’ll be 100% of Thailand.

 

[dampfnudel]

But you peeps still get the stuff cheaper!

But that doesn’t necessarily mean we feel like we got a good deal/value here either. Some will gladly shell out whatever Apple demands, but most of us do cringe ever so slightly when making a purchase at the Apple Store or online. No one is forcing us to buy and we have alternatives, but that doesn’t mean we have to be “fully comfortable” with the price either when we do make a purchase. Every person I’ve spoken who has an X loves it, but most have mentioned the price in a negative way. I think that’s healthy from a mental perspective that even people who can afford the high prices acknowledge the possibility that they may have paid too much for what they’re getting in return. This might influence their future behavior in a positive, more environmentally sound way by holding on to their phones a little longer, perhaps deciding just to replace their batteries. Of course with an OLED iPhone, the battery may not be the only concern after a couple of years. Time will tell.

 

[JPack]

This deal says “SE2” all over it.

The timing fits and the iPhone 6s model fits as a low-cost entry replacement for the SE.

 

[Madhava]

With the new increase in taxes (To be effective April 1st 2018) for imported mobiles(From 15% to 20%), iPhones are going to cost even more.
This manufacturing capacity expansion in India is going to further help Apple now.

 

[Jesse Waugh]

If Apple really wants to gain market share in India, they should open Apple Stores in all major cities, offer Apple Care, service and also start monthly plans similar to US.

The Indian government doesn’t let Apple set up stores or Apple Care or services. I find it hard to believe you don’t know that.

 

[Madhava]

The Indian government doesn’t let Apple set up stores or Apple Care or services. I find it hard to believe you don’t know that.

I see that Apple is making investments in manufacturing in India to meet the minimum local criteria. If they meet the criteria they can open the stores. Not sure why government wants to stop them.

 

[Ishan Agarwal]

I dont’t want to sound rude, but why is apple really pushing so hard entering the Indian Market when there are other better markets to start with.

It’s expensive, India has very strict laws for foreign companies and the market is very small ( most Indians that i know prefer Android because its cheap)

iPhone sold in India are very expensive, but we should blame it to the government (taxes, duties and stuffs)

I totally agree with you on this! Indian govt. is definitely charging a lot of tax and it is one of the main reason for the high prices of apple products in India!

 

[Aniruddh]

The Indian government doesn’t let Apple set up stores or Apple Care or services. I find it hard to believe you don’t know that.

No, that's not true story.

Government has approved 100% FDI in single brand retail.

As for manufacturing, Apple is asking for tax benefits for 15 years on top of MiI incentives and government doesn't want to give advantage to a single company.

http://www.firstpost.com/tech/news-...r-manufacturing-iphones-in-india-4253265.html

 

[Jesse Waugh]

I see that Apple is making investments in manufacturing in India to meet the minimum local criteria. If they meet the criteria they can open the stores. Not sure why government wants to stop them.

What other countries have “minimum local criteria”? Isn’t that just a formalized baksheesh?
[doublepost=1517513850][/doublepost]

No, that's not true story.

Government has approved 100% FDI in single brand retail.

As for manufacturing, Apple is asking for tax benefits for 15 years on top of MiI incentives and government doesn't want to give advantage to a single company.

http://www.firstpost.com/tech/news-...r-manufacturing-iphones-in-india-4253265.html

India’s loss then - obviously.

 

[Aniruddh]

India’s loss then - obviously.

No loss for India. It will be Apple which will miss an economy with 1.3 Bn people, growing at almost 7%.

 

[Jesse Waugh]

No loss for India. It will be Apple which will miss an economy with 1.3 Bn people, growing at almost 7%.

Such a predictable, typical response. It’s like you’re programmed. What’s growing at 7%? - the population? And that’s going to benefit the economy how?

 

[Aniruddh]

Such a predictable, typical response. It’s like you’re programmed.

Oh man, stay deluded. Samsung and other companies are not a fool to be manufacturing it's flagships here. It's only Apple that missing the real market here.

If you can do simple maths, you will not have to argue with me.