Apple is a multinational corporation with facilities all over the world. In addition to manufacturing products in China and the United States, Apple is now building the iPhone XR in India.
By Chand Bellur
October 21, 2019 at 3:45 p.m. PDT
iPhone XR Currently Assembled and Sold in India
The iPhone XR was once the most popular phone in the United States. Although it is still sold here, the relatively new smartphone fits in well with the Indian market. While the iPhone XR is expensive by Indian standards, some of the new, emerging upper-middle-class can afford the device.
Although the smartphones will primarily be sold in India, Apple’s plan is to sell some Indian-made iPhones in other markets. Apple partner Foxconn builds and operates manufacturing facilities in India.
Apple Manufactures the iPhone XR in India to Avoid Duties
India’s trade policy is the major reason why Apple is manufacturing iPhones in India. The country has long had a policy of protecting infant industries and domestic manufacturing. It’s a complicated system of duties, tariffs and regulations, which takes time to negotiate.
Given India’s size and growing middle class, Apple’s move to navigate complicated bureaucracies is a rational one. Costs of doing business in India’s baroque regulatory environment are mitigated by inexpensive labor and a large consumer market.
The iPhone XR sells for Rs 49,000, which is roughly $700 US. The hefty price won’t appeal to most consumers, but it gives Apple a deeper foothold into the Indian market. The Cupertino-based company is also working on manufacturing the iPhone 11 in India.
iPhone SE Was First iPhone Assembled in India
The iPhone XR is not the first Apple device manufactured in India. Apple’s low-cost iPhone SE was first-chosen for this emerging market. Once again, Apple chose an affordable model to sell in a growing market.
Apple’s India strategy is part of a larger roadmap to regain iPhone sales. Once accounting for two-thirds of the company’s revenues, the iconic smartphone only produces about half of Apple’s earnings. In addition to an increased focus on services, Apple’s plan to manufacture and sell iPhones in India will likely improve revenues.
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