Apple is looking to reduce the price of iPhone 6S Plus in India, and a method of doing it is through setting up a new factory in southern part of the country, local media outlet The Economic Times reported today. The company may start manufacturing in Bengaluru (formerly known as Bangalore) in two weeks.
If the company were to have a local factory building iPhones, it would help Apple slash Indian iPhone prices, in response to government policies that tax foreign phones. In terms of taxes, the Indian government raised tariffs on smartphones from 15 to 20 percent in February, which forced Apple to seek new measure to drop its prices and stay competitive.
By manufacturing locally, this would help Apple cut prices by 5-7 percent, according to the report, if the company were to make all iPhone 6S Pluses sold in the Indian market domestically. If prices were to drop that low, it would allow Apple’s smartphone to become a more affordable option like OnePlus phones or certain Samsung phones, as noted by The Economic Times.
Earlier this month, the Indian government also announced a 10 percent customers city on circuitboards, connectors, camera modules, and other parts, The Economic Times reports. If Apple wants to cut down on additional cost, it will want to make parts and packaging within India as well. The reason why Indian government is doing this is to boost the local smartphone economy within the country.