As we have seen before, Apple is making every effort to establish a production facility in India to produce the existing iPhone. Manufacturing in India is the key to avoiding India’s high import taxes on foreign goods.
On Thursday, the Indian IT department signed a new $1 million Wistron plant plan in India. The factory is expected to produce iPhone 8 phones, while factories such as Foxconn will produce iPhone XS and iPhone XS Max models made in India.
Currently, Apple mainly sells Indian-made iPhone SE and iPhone 6S models in India. The price of these phones is still high compared to the average wage in India, but if combined with government tariffs on imports, the price will be nearly 40% higher. And both SE and 6S have stopped selling in several major markets.
Apple knows that if you want to increase India's demand for the iPhone, you have to produce new models in India to lower the price. India is an emerging and huge potential growth market, and the average income of Indian households will rise in the next few years when the economy is mature.However, in the original market share data, Apple's smartphone market share fell last year, because customers favor the purchase of much cheaper Android phones. A market strategy without an import tariff premium is just a step in the process of getting the iPhone to stand firm in India.