Indian Express:

India is a crucial market for Apple in terms of future growth, especially with the US, Europe and China markets pretty much saturated by now. It would not have been an easy decision for Apple, given that it will have to source about 30 per cent or inputs, locally. How they cross this hurdle will be interesting, especially since the company has sought exemption from this norm. There is a possibility that the government might actually grant a concession given that getting Apple to make in India will be a badge the Modi government can wear proudly on its sleeve.

Apple manufacturing in India is a win for Apple, a win for the Modi government. Apple expands their market, India gets a prestige brand to manufacture locally.

Actual manufacturing is much easier, given that both Foxconn and Wistron Corp are already in India. In fact, Apple seems to have decided that Wistron Corp will be the first to make the iPhone in India, most probably the iPhone SE if reports are to be believed. The Taiwanese company is known to have manufactured the iPhone SE and the iPhone 5, both of which have similar chassis.

All the pieces seem to be in place here. So how does this impact the economics of owning an iPhone in India?

Let’s take the case of the iPhone SE. This 4.7-inch smartphone has a box price of Rs 39,000 in India, while it is possible to buy the phone for around Rs 30,000 online the US price of the phone is at least 10 per cent less than even this price. With local manufacturing, Apple should be able to offer the best price in India.

Clearly, building locally is a benefit to the Indian economy (jobs and taxes) and to Apple (units sold, expansion of ecosystem, better margins).

Would this model translate to the US if Apple built iPhones locally? Not likely, given the higher wages, pricier real estate, taxes, and heavier regulations found in the US. Not without a push or incentive via tariff or taxes.