The exorbitant price of the iPhone 12 in India is keeping a lot many aspiring buyers away from owning the most fascinating smartphone. However, it appears now that Indian Apple fans might soon be able to grab iPhone 12 at a relatively lower price.
According to recent media reports, the Cupertino, California-based tech giant is all set to start making iPhone 12 in India. Prior to this, Apple has already been manufacturing the iPHone7, iPhone SE, iPhone XR and iPhone 11 in the country.
However, to test the water, Apple has planned to shift only 7-10 per cent of its iPhone 12 production to India from China.
The current move by the iPhone maker is a step forward in their continued efforts to reduce dependency on China’s manufacturing prowess. India is one among several regions Apple has its eye on for shifting its manufacturing base.
Apple iPhone 12 is not the only model the company is exploring options to shift the production of to India. The Cupertino giant is also considering to move the manufacturing of the iPhone 12 Mini as well, but, it hasn’t made any concrete decision about the same.
Apple iPhone 12: Local Production leads To Price Cut
Apple iPhone 12 that would be manufactured in India will also be available for purchase in this domestic market besides being exported. Local manufacturing provides few advantages to Apple to play with the price of iPhone 12 to penetrate the market deeply. The move could result in a lower price of iPhone 12 as Apple wouldn’t have to pay hefty import tariffs that are imposed on every iPhone shipped in India.
To put things in perspective, let us understand the pricing structure of iPhone models that are imported and manufactured locally.
The latest model iPhone 12 currently retails in the US for $799, translating to Rs 58,434 in straight forward currency conversion. Whereas, in India, it is tagged with Rs 79,900 – a massive difference of Rs 21,466, all thanks to custom and import duties imposed.
On the other hand, there is a negligible different of Rs 800 in the price of iPhone SE – a device that is being manufactured in India. iPhone SE is up for grab for $399 in the US, which amounts to Rs 29,196 after currency conversion. The device, however, is available for Rs. 29,999 in India as Apple is able to save a lot on taxes and eventually passes on to customers.
iPhone SE is not the only model that offers local manufacturing advantages to Indian customers. The relatively lower price different between the US and India for iPhone 11, iPhone XR and iPhone 7 is also paints the similar picture.
Taking advantage of local manufacturing in India, Apple could easily slash the price of iPhone 12. This will also give a much-needed boost to iPhone maker in India – the market Apple has long been trying to expand its footprints.
Apple gadgets have been priced exorbitantly in India for so long because the iPhone maker has been primarily importing its devices or device parts. And that, in turn, attracts heavy import tariff and customs duties.
Also, on top of that, India charges 18% GST on smartphones which further increases the price and make it impossible for an average Apple product aficionado in India to upgrade to the company’s latest devices as and when they release.
It will, however, no longer be the case as Apple with its determined stance for local manufacturing is gunning to bring down the prices in India.
Unlike China where Apple has a manufacturing arrangement with Foxconn and Wistron, Apple gives assembly contracts to the same companies in India. These partner companies have set up local manufacturing & assembly lines to take the advantage of government policies, which, indirectly, gets passed to smartphone companies as well. The relatively cheaper iPhone 6S, iPhone 7, iPhone 11 and iPhone SE that are assembled in India are a great example of these benefits.
With the local assembly of iPhone 12, Apple is also trying to gain similar advantage and reduce the price of iPhone 12 for indian buyers.
Until that happens Apple is trying to keep the price of iPhone 12, and other models as well, as much lower as possible by employing other strategies. The company is actively partnering up with many Fintech and BFSi companies to make iPhone offerings more affordable for Indian consumers. In October 2020, Apple joined hands with ZestMoney to offer ‘zero-cost buy now, pay later’ EMI plans for consumers. Similarly, it has partnered with multiple banks to offer Zero-Cost EMI options along with flat Rs 5,000 – Rs 7,000 discount on retail price.
In the last festive season, Apple offered iPhone 11 for a steal deal price of Rs 47,999 during Amazon’s Great Indian Festival Sale.
Thus, it now remains to be seen when will Indian consumers be able to get their hands on a locally manufactured and affordable iPhone 12 smartphone. Also, will Apple be able to slash the price of iPhone 12 to a jaw-dropping level?
We will keep you updated on all future developments. Until then, stay tuned.