- iPhone 16 may be cheaper due to India production
- Pro models made in India for the first time
- Price drop expected globally, including the US
According to a recent report, Apple’s iPhone 16 may be less expensive than prior versions when it releases next month.
The price drop is due to the tech giant transferring some high-end model production to India, which could save locals up to 10%.
However, due to the poor demand for iPhones in Asian countries, these lower-priced versions are likely to be exported to purchasers in other countries, including the United States, for a lower cost, according to reports.
The iPhone 16 Pro is rumoured to start at $1,099, while the Pro Max will likely cost approximately $1,200.
Apple has increased production of its Pro iPhone 16 models in India for the first time since relocating production from China in 2022.
Foxconn, the company’s primary supplier, has begun training thousands of workers at its Tamil Nadu facility as it rushes to create the iPhone 16 Pro and Pro Max alongside their global release.
Historically, iPhones have not been made in India, leaving inhabitants with no choice except to buy the latest model from outside at higher prices.
To import the devices, Apple must pay a 22% customs tax charge and a 10% premium on basic, forcing the corporation to keep the pricing substantially higher in the country.
However, by domestically constructing the handsets, Apple apparently hopes to cut the cost of the latest iPhone by up to 10% in India, where the average price is $1,550.
“The production of Pro models in India will increasingly encourage customers to buy locally instead of purchasing the devices overseas as the price gap narrows,” Sanyam Chaurasia, an analyst at research firm Canalys, told Bloomberg.
‘Several financing options, particularly during the holiday season, will fuel stronger domestic sales for Apple.’
Although Apple has produced iPhones in India since 2018, this is the first time the iPhone Pro models have been made outside of China.
Other Apple partners, including Pegatron and the Tata group, are expected to begin building iPhone 16 Pro variants in India shortly after the debut.
India’s manufacturing is still a small fraction of what China produces, but Apple is reportedly hoping to expand output to 25% by next year.
Meanwhile, an unnamed source informed The Economic Times that Apple may make the iPhone 17 exclusively in India.
The move comes after Prime Minister Narendra Modi announced financial incentives worth $28 billion in subsidies to lure enterprises to begin producing their products in the country.
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The prime minister asked companies to focus on ‘design in India, design for the world‘ and build goods that can serve both international and domestic markets.
India is renowned for its superior quality. According to the Business Standard, Modi stated that India must now focus on design for the rest of the globe.
We must attempt to ensure that the Indian Standard becomes the International Standard.
‘This will depend on the quality of our manufacturing, service, and approach,’ he said.
The day is not far when India will be the centre of industrial manufacture, and the world will be looking to it.
