A new report has claimed that Apple's iPhone 16 could be cheaper than previous models when it launches next month.
The price reduction is due to the tech giant moving some production of the high-end models to India, which could cut the cost by up to 10 percent for locals.
However, the relatively low demand for iPhones in Asian nation means these lower-priced models will likely be exported to buyers in other countries including the US at a reduced cost, the report claimed.
The iPhone 16 Pro is expected to start at $1,099 and costs for the Pro Max will likely begin around $1,200.
Apple has ramped up production of its Pro iPhone 16 models in India for the first time since it started moving its production to the country from China in 2022.
Foxconn, the company’s main supplier, has begun training thousands of workers at its Tamil Nadu factory as it rushes to produce the iPhone 16 Pro and Pro Max alongside the global release.
Historically, iPhones haven’t been manufactured in India, leaving residents with no choice but to purchase the newest model from abroad and pay higher prices for it.
Apple has to dish out a 22 percent customs duty charge and a 10 percent surcharge on basic to import the devices, which forces the company to keep the price tag much higher in the country.
But by locally assembling the devices, Apple reportedly aims to reduce the cost of the newest iPhone by up to 10 percent in India where the average cost is $1,550.
‘The production of Pro models in India will increasingly encourage customers to buy locally instead of purchasing the devices overseas as the price gap narrows,’ Sanyam Chaurasia, an analyst at research firm Canalys told Bloomberg.
‘Several financing options, particularly during festive seasons, will drive higher domestic sales for Apple.’
Although Apple has assembled iPhones in India since 2018, this marks the first time it has manufactured its iPhone Pro models outside of China.
Other Apple partners, like Pegatron and the Tata group, will also reportedly begin assembling the iPhone 16 pro models in India shortly after the launch.
India’s production is still a small fraction of what’s being done in China but Apple reportedly hopes to increase the output to 25 percent by next year.
Meanwhile, an unnamed source told the The Economic Times that Apple may even exclusively produce the iPhone 17 in India.
The move comes as Prime Minister Narendra Modi introduced financial incentives offering $28 billion in subsidies to entice companies to start manufacturing their products in the country.
The prime minister said that companies should focus on ‘design in India, design for the world’ and urged them to create products that can cater to both international and domestic markets.
‘India is known for its best quality. Now we have to focus on the field of design in India for the world,’ said Modi, the Business Standard reported.
‘We have to try to make sure that the Indian Standard should become the International Standard.
‘This will depend on the quality of our production, service, and our approach,’ he continued.
‘The day is not far when India will be the hub of industrial manufacturing and the world will be looking towards it.’
