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Apple’s iPhone 6s Costs $955 in India Here’s How It Can Lower the Price

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Apple’s iPhone 6s Costs $955 in India Here’s How It Can Lower the Price


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Apple’s iPhone is a premium handset. And in the U.S., the company sells the 16GB version of the new 6s for $649.


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That’s a steep price for American consumers, but it’s nowhere near the $955 price tag Indian consumers pay for the same phone. Source: CNET.


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Why is there such a huge difference in price?


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One of the reasons is fluctuating currency rates, which effects how much the Indian rupee is worth, compared to the U.S. dollar.


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But even if India’s currency stabilized, iPhones would still be much more expensive than they are in the United States.


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Because in India, foreign companies have to pay very high import taxes to sell devices in the country.


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The only way to get around the tax is to assemble a significant amount of the product in India.


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Which Apple does not do.


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But that may be about to change. Foxconn said a few months ago that it will build about 20 factories and data centers in India by 2020.


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After all the projects are complete, Foxconn will have spent about $5 billion in the country.


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So what does this have to do with Apple?


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Foxconn is the main manufacturer of Apple’s iPhones. So if the company is expanding its factories in India, it could mean Apple’s phones might be assembled there soon.


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And that could drive the cost of the iPhone in India down dramatically.


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Mobile phones sales are growing fast in India, and the country will overtake the U.S. as the second largest smartphone market in 2017. Source: Strategy Analytics.


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But right now, many people in the country cannot afford an iPhone.


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If Apple assembles some of its phones in the country, the iPhone price will drop in India and more consumers will be able to purchase it.


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For now, neither Foxconn nor Apple have said the new factories will build iPhones.


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So it’s not clear if the iPhone’s price in India will change any time soon.


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But with 174 million smartphone units expected to be sold in India by 2017, Apple has every incentive to start building phones in the country as soon as possible. Source: Strategy Analytics.


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