It looks like Apple will avoid 20% tax if they manufacture the new 2020 iPhone SE in India.
Apple has been assembling phones in India since 2017.
The original iPhone SE and the iPhone XR were 2 phones assembled in India.
If information circulating the internet is to be believed, then Apple is looking to manufacture or rather assemble the 2020 iPhone SE in India. According to Apple Insider, “Apple has told at least one of its suppliers in China to start shipping components for the 2020 iPhone SE to India manufacturing partners. This will start the process to assemble the new iPhone in India, allowing the company to work around hefty import taxes.”
An Indian Government official in May said, “We expect Apple to produce up to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn.” Wistron assembled the original iPhone SE in India and it looks like they will assemble the 2020 iPhone SE (review) in India as well. Foxconn India has been assembling the iPhone XR (review) in India.
To put the taxation of smartphones imported in India to perspective, the iPhone SE sells for about $400 (Rs 30,500 approx directly converted) in the US but in India, the smartphone starts at Rs 42,500. If the iPhone SE is assembled in India, it could lead to a drop in price for the device, making it an attractive proposition for those looking to enter the Apple ecosystem.
According to the source, it looks like the decision to move some of the iPhone SE manufacturing to India comes “after an initiative by the India government to increase manufacturing in the region”.
Apple isn’t the only one looking to make a dent in the Indian market by manufacturing locally and reducing the price of their products. Other smartphone and consumer electronics manufacturers are looking to take advantage of this and shifting assembling to India.
Information circulating the internet suggests that OnePlus has partnered with Skyworth to manufacture its TVs in India. OnePlus has done this to take advantage of zero import duties of the key component which is the open cell TV panel. It accounts for 70 percent of the cost of the TV. This will help OnePlus keep the cost of the TV down and be more competitive in the Indian market. When OnePlus launched the Q1 and Q1 Pro in India in 2019, the TVs were expensive, largely due to the import tax. It looks like the upcoming OnePlus TVs could be cheaper since they may be made in India. You can read more about it here.