The made-in-India iPhone 15 shows how Apple is trying to win the world's second-largest smartphone market and reduce its reliance on manufacturing in China. According to statistics, Apple and its manufacturing partners may decide to absorb the higher costs of making handsets in India.
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Business Standard quoted sources involved in the production of iPhones saying that the incentives of an average of 4–6% on incremental sales for handsets made in India are not enough to make up for the high cost of 7-8% for making handsets in India than in China.
Besides, sources told Business Standard that to assemble iPhones in India with about 15% value addition, manufacturers have to import components for assembling, on which the Indian government imposed basic customs duty, increasing the bill of material cost by 7-8% or about 5% on freight on board (FOB) value, while China imposed zero duty on imported handset components. According to India's official data, for imported handset parts with HS code 851719, a 20% basic customs duty is levied.