Apple supplier Wistron has started production of the iPhone 6s at its factory in Bengaluru, India.
This marks the second iPhone to be produced in India. Last year, Wistron began producing the iPhone SE in India. The iPhone 6s, which launched in 2015, is a logical choice as a follow-up due to the popularity of the handset in India, thanks to its cheaper price.
Apple has reportedly been carrying out trial production for a second iPhone model iPhone 6 series in India since April. It chose the iPhone 6s due to its sales potential.
According to Hong Kong-based research firm Counterpoint, the iPhone 6 series contributes almost a third of total iPhone sales in India. That’s significantly more than the iPhone SE, which accounts for less than 15 percent.
Protecting against import duties
Producing iPhones in India allows Apple to protect itself against import duties on handsets brought from outside India. Apple raised iPhone prices by 6-7 percent earlier this year when customs duty on smartphones in India was increased from 10 percent to 15 percent and, later, to 20 percent.
In April, the Indian government also imposed a 10 percent customs duty on components like printed circuit boards populated with memory and chips, camera modules, and connectors.
We first reported on the possibility of iPhone 6s production back in January. At the time, we noted that Wistron was putting together the final points on a deal that would secure it an extra 100 acres of land in India’s tech hub of Bengaluru to build a $157 million facility.
Along with Wistron, other Apple manufacturers such as Foxconn and Pegatron are also reportedly looking to expand their manufacturing presence in India.
Source: Economic Times