India has recently hiked the customs duty on electronics and components which initially increased the price of smartphones and other electronics. The Indian government is more emphasizing the Make in India campaign and this step is taken to push companies to manufacture their products in the country. Today Commerce and Industry Minister Piyush Goyal tweeted that Apple has started manufacturing its latest iPhone 11 smartphone in the country.
Previously Apple has started assembling the iPhone XR in India and now the company is moving forward. According to the report, this step will help the company to save 20 percent customs duty which they were paying while importing the handsets from its global manufacturing units. It seems that all the major suppliers of Apple including Foxconn, Wistron, and Pegatron have geared up to make some huge investments in terms of manufacturing unit and assembly in India.
“Significant boost to Make in India!
Apple has started manufacturing iPhone 11 in India, bringing a top-of-the-line model for the first time in the country,” reads Piyush Goyal’s Twitter post.
Significant boost to Make in India!
Apple has started manufacturing iPhone 11 in India, bringing a top-of-the-line model for the first time in the country.https://t.co/yjmKYeFCpL
— Piyush Goyal Office (@PiyushGoyalOffc) July 24, 2020
India has a population of 50 crore smartphone users and it significantly becomes one of the important markets for all the smartphone and accessories manufacturing brands. There are many brands who have understood the value of the Indian smartphone market much prior and decided to start manufacture in the country to meet the demand of Indian consumers. Samsung opened its world’s largest manufacturing factory in India back in 2018.
Local manufacturing will help the company to fulfil the demand of the consumers and also increase employment in the country. On top of everything, the company will enjoy the benefits of cheap labour cost and also save extra expenditure on custom duty.
Foxconn has already announced that it’s planning to invest around $1billion to expand its footprints in India. Meanwhile, Pegatron has also expected to make some investments in India. However, let see where this will reduce the pricing of Apple iPhone 11 in India or not because we haven’t seen much difference in the pricing of iPhone XR specifically for India.