In India, at the Bangalore site, an Apple supplier has production capacity. Example: iPhone SE made.
Wistron tests iPhone 6s Plus production in India
Two senior industry executives have confirmed to the Indian magazine “The Economic Times” that Wistron is currently producing the three in Bangalore Years old iPhone 6s Plus is testing. In a few weeks, the series production will take place on site. In the meantime, five production facilities of Apple suppliers are to be located in India. In 2017, it was just one.
Why would Apple want to produce a three-year-old smartphone in 2018 at one more location? The company from Cupertino hopes by the relocation on savings in production costs. Maybe that results in a lower sales price of the device in India. Because Apple would like to gain a foothold in the market.
Apple could save on import tariffs
Lower wages and production costs in detail could lead to a reduction of costs between 5 and 7 percent. However, by manufacturing the device in India, Apple could circumvent especially unwanted import tariffs and then offer the iPhone 6s Plus cheaper in India.
Apple is well-known for selling smartphones in emerging markets for extended periods of time, although in other markets already no longer be offered. For example, Apple sold the iPhone 6 in India in 2017 successfully. The device accounted for about a third of all iPhone sales.