Apple supplier Wistron has plans to assemble printed circuit boards for future iPhones at a new plant in southern India, a new report claims.
Wistron already manufactures iPhone 6s and 7 models in India. It started out manufacturing iPhones for the Indian market by building iPhone SE modes in 2017.
It’s not clear from the report whether the printed circuit board components will be reserved exclusively for iPhones sold in India, or used for iPhones sold elsewhere. PCBs are the bed that’s used for the processors, memory and wireless chips essential for every electronics device. Fully assembled, PCBs represent around half the cost of a smartphone.
A report for the South China Morning Post notes that:
“Wistron Corp’s assembly of printed circuit boards in India will be a first for the electronics contract manufacturer. … The deepening of PCB assembly in India will help [Apple] save on import taxes on smartphone components, levied by Prime Minister Narendra Modi’s government to boost local manufacturing and create new jobs.”
Building crucial iPhone component in India
Over the weekend, India revealed its new federal budget. From April onward, it will start taxing imports of fully-laden PCBs (with all the fitted components) at a 20% rate. It’s not just about import duties, though.
Producing more goods in India can help Apple with quotas regarding local sourcing of products. While some of these quotas have been loosened, it’s still smart business sense for Apple to show willingness in this area. Apple is currently working hard to grow its brand in India, which represents its largest untapped market.
In addition to Wistron, other Apple manufacturers Foxconn and Pegatron are also looking to expand their manufacturing presence in India. Apple has previously asked its suppliers to explore manufacturing locations out of China. That was initially due to the burgeoning trade war between the U.S. and China. With the current coronavirus, however, Apple’s surely happy to have other places working to build its devices at a time when China is struggling.
