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Apple’s iPhone 6s Costs $955 in India Here’s How It Can Lower the Price
Apple’s iPhone is a premium handset. And in the U.S., the company sells the 16GB version of the new 6s for $649.
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.
Why is there such a huge difference in price?
One of the reasons is fluctuating currency rates, which effects how much the Indian rupee is worth, compared to the U.S. dollar.
But even if India’s currency stabilized, iPhones would still be much more expensive than they are in the United States.
Because in India, foreign companies have to pay very high import taxes to sell devices in the country.
The only way to get around the tax is to assemble a significant amount of the product in India.
Which Apple does not do.
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.
After all the projects are complete, Foxconn will have spent about $5 billion in the country.
So what does this have to do with Apple?
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.
And that could drive the cost of the iPhone in India down dramatically.
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.
But right now, many people in the country cannot afford an iPhone.
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.
For now, neither Foxconn nor Apple have said the new factories will build iPhones.
So it’s not clear if the iPhone’s price in India will change any time soon.
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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