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Over two years after the first iPhone SE devices were assembled in India, Apple is now exporting some India-made iPhones to European markets. The news comes from three people aware of Apple's plans, who stated that iPhone assembler Wistron recently began exporting some iPhone 6s and iPhone 7 models from India to Europe (via The Economic Times).

iphone-7-plus-colors.jpg

The iPhones are first being built in Wistron's facility in Bangalore, and about 100,000 units per month are being exported. Apple first began this process a few months ago, in a move that should further cement India as one of the company's assembly and manufacturing hubs outside of China.
The other two people, who are senior executives in the industry said that the export volumes were about 70-80% of the total capacity at the facility. Wistron has been making iPhone 6 since the year before and iPhone 7 since the beginning of this year.
According to industry watchers, Apple is said to be treating India "more as a production hub than a significant market" for device sales. The company will start manufacturing higher-end iPhone models locally in India through Foxconn, and as much as 70 to 80 percent of the output of those devices might be exported elsewhere.

Apple has been re-focusing efforts in India in hopes of expanding production outside of China in the wake of the ongoing trade war between the United States and China. Last summer, Apple detailed a new India strategy with official retail stores, overhauled relationships with independent retailers, more frequent sales, and improved apps and services.

Some of these plans have started to come to fruition, as Apple has now finalized a list of locations for its first retail store in India.

Article Link: Apple Now Exporting Some iPhone 6s and 7 Models Made in India to Europe
 

Hazmat401

macrumors 6502
Dec 29, 2017
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Delaware County, Pa
Wouldn’t it just be cheaper to just stop making those models... and just take those manufacturing savings and make the X and XS models cheaper?

Then there’s the XR.... just cut that phone price in half to combat the cheaper android phones

I don’t get it
 
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Shirasaki

macrumors P6
May 16, 2015
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Wouldn’t it just be cheaper to just stop making those models... and just take those manufacturing savings and make the X and XS models cheaper?

Then there’s the XR.... just cut that phone price in half to combat the cheaper android phones

I don’t get it
This solution sounds intuitive, but if the termination cost is higher than just keeping the production of certain products, Apple would only make a financially more sensible choice to keep producing those phones.
Just like stopping production of a refinery costs a huge amount, shutting a production line could cost Apple a huge amount as well.
 

BootsWalking

macrumors 68020
Feb 1, 2014
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It’s going to be Wistron/Foxconn/Pegatron that do that, not Apple. Apple doesn’t make their phones themselves.

Just like how Walmart doesn't make the Chinese goods sold in their store themselves. But guess what - if you want to sell into Walmart then you pretty much have to make your stuff in China, otherwise you wont meet Walmart's legendary supplier price demands. Same goes for Apple's manufacturing partners. And Apple is acutely aware of this reality.
 
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justperry

macrumors G5
Aug 10, 2007
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I'm a rolling stone.
This solution sounds intuitive, but if the termination cost is higher than just keeping the production of certain products, Apple would only make a financially more sensible choice to keep producing those phones.
Just like stopping production of a refinery costs a huge amount, shutting a production line could cost Apple a huge amount as well.

Not necessarily, Apple themselves don't make hardware, it's outsourced, Apple can stop anytime if there are no contracts.
 

ksec

macrumors 68020
Dec 23, 2015
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just take those manufacturing savings

What savings?

just cut that phone price in half to combat the cheaper android phones

These leaves Apple with little profits, and the cheaper iPhone XR, assuming you mean only for India, will then be resold to other region due to price differentiation.

I am wondering if this means iPhone 7 will stay around for another year. At least all iPhone 7 globally will be Made in India?
 
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Falhófnir

macrumors 603
Aug 19, 2017
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Wouldn’t it just be cheaper to just stop making those models... and just take those manufacturing savings and make the X and XS models cheaper?

Then there’s the XR.... just cut that phone price in half to combat the cheaper android phones

I don’t get it
The 6S is what they're using to compete with £299 Androids...
 

sublunar

macrumors 68020
Jun 23, 2007
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I had assumed the UK 6s and 7 models still on sale were remainder models from when those phones were still current in Apple Stores but it makes sense that they are now being made brand new and imported into Europe as native stocks run down. It does sound like the Apple conveyor belt strategy will be continuing as new models come along later this year.
 

Shirasaki

macrumors P6
May 16, 2015
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Not necessarily, Apple themselves don't make hardware, it's outsourced, Apple can stop anytime if there are no contracts.
Again, at what cost? Terminating contract takes time and efforts. It’s definitely not a “flip the switch” thing like us turning on/off a light.
 

pika2000

Suspended
Jun 22, 2007
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Just like how Walmart doesn't make the Chinese goods sold in their store themselves. But guess what - if you want to sell into Walmart then you pretty much have to make your stuff in China, otherwise you wont meet Walmart's legendary supplier price demands. Same goes for Apple's manufacturing partners. And Apple is acutely aware of this reality.
And? The post I replied to made a joke about Apple colonizing a new species, but in actuality it won’t be Apple. Plus the likes of Foxconn/Wistron/Pegatron also make stuff for everybody else. Making it sound like Apple to be the only one hunting for cheap labor is just misinformed, while in reality Apple is also the one pushing for better labor condition.
 

BootsWalking

macrumors 68020
Feb 1, 2014
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And? The post I replied to made a joke about Apple colonizing a new species, but in actuality it won’t be Apple. Plus the likes of Foxconn/Wistron/Pegatron also make stuff for everybody else. Making it sound like Apple to be the only one hunting for cheap labor is just misinformed, while in reality Apple is also the one pushing for better labor condition.

The "everybody else does it defense" in the race to the bottom in labor costs doesn't persuade, sorry.
 

engbren

macrumors regular
Jul 21, 2011
127
85
Australia
It’s incredible that they can manage the logistics of manufacturing and exporting at scale in Bangalore. It’s an inland city with enormous developments and sprawling tech parks and is known as the Silicon Valley of India. However, I had assumed it more in terms of software development as the roads and infrastructure to move goods around are not great and the traffic jams legendary.
I remember one trip from my hotel to the airport taking 5 hours.
 

sublunar

macrumors 68020
Jun 23, 2007
2,139
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They were making iPhone SE devices too. Have those been exported?

In the UK you can't buy a 'brand new' iPhone SE from many reputable retailers now from what I have seen. Argos sell them brand new but they are pretty much the same price as a 6s. Its actually possible to find a 6s for cheaper than Argos sell the SE depending on the retailer you check out. Obviously at that price point the refurb market is also heavily populated and in the UK Apple have got in and amongst that with iPhone refurbs.

That's not to say that Apple aren't selling them elsewhere (eg India) but in those markets they are up against bigger screened Android phones which have more storage space. It's a difficult sell when the same money or less appears to give you so much more - the average Joe has fairly basic needs: screen size, storage quantity, and camera. They won't be bothered about quality of screen, battery life, or the performance of the phone or its storage.

For me, that suggests that Apple ought think about making small iPhones a luxury item (eg OLED screen, FaceID), not a budget option, as price conscious buyers appear to be looking for obvious value for money in their phones.

There will always be those who will say that a 6s or 7 is years old tech even though they can run rings around budget Android devices.
 
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