He explained that this has been a strategy that all Chinese handset manufacturers have followed in India over the past couple of years, pointing out that labor in India is cheaper than in China so it makes sense for Apple to grow the Indian market by establishing a domestic plant.
Analysts said the Wistron plant in Bangalore would also manufacture Apple iPhones for exports over time.
Meanwhile, data presented by Hong Kong-based Counterpoint Technology Market Research showed that Apple sold 2.5 million iPhones in India from October 2015 to September 2016, an increase of more than 50% over the year-ago period.
Apple India registered robust sales in the 2016 financial year, up 56% from the year before. iPhones are considered quite expensive in India, but with a local assembly unit, some analysts believe, Apple can avoid import tariffs and cut the iPhone price by around 15%, allowing it to expand the market.
Apple CEO Tim Cook recently said India’s low per capita income would not become an impediment in growing Apple’s market share in the country,
More than 50% of Apple’s sales in India are contributed by older models which become cheaper once newer models are launched, indicating the brand’s aspirational value.
Apple has around 40% to 45% market share in India’s premium phone segment.