The trade tensions between the US and China are very unlikely to be resolved anytime soon. The Cupertino based company Apple has been badly affected by this with the US President personally asking the company to shift its manufacturing to the US. The US government has also increased the tax Apple has to pay on certain products.
Apple has reportedly been looking for alternative manufacturing plants in other parts of the world. Multiple sources reported about Apple considering Vietnam and India for manufacturing some of its products. The report now appears to have been legit as Apple today officially announced that it has begun manufacturing in India.
iPhones could get cheaper soon
At a manufacturing plant close to the major city Chennai (in Tamil Nadu, India), Apple has begun manufacturing the iPhone XR. The company has reportedly been holding a rigorous set of test runs for a couple of weeks now. By doing so, Apple could save upto 20% from the fee the company has to pay as import duty.
India has been a difficult market for Apple to penetrate and with the ongoing US-China struggle, the company could very well strengthen its base in India. The import duty is very high in India and Apple requested the government of India multiple times to waive the fee and also allow it to sell refurbished iPhones. However, the government asked the company to manufacture its good locally.
Apple stores in India soon
Apple is also reportedly working on setting up its own stores in India sometime soon. It will certainly help Apple manage its funds efficiently; it will not have to depend on third-party stores. Also, in the future the benefits could be passed on to the customers.
The Chennai manufacturing plant is working on only the iPhone XR at the moment. However, the company is also considering to manufacture its latest batch of iPhone 11s in India very soon.