Apple trialing iPhone 6s Plus production in India in bid to cut costs

Posted:
in iPhone
Apple's lone assembly partner with a footprint in India, Wistron, has reportedly entered trial production of the iPhone 6s Plus there -- despite that device being nearly three years old.




Wistron has set up a line for the 6s Plus at its Bengaluru facility, which currently manufactures the iPhone SE, according to two senior industry executives cited by India's The Economic Times. Commercial production will allegedly begin within the next couple of weeks.

While it might initially seem counterintuitive to run 6s Plus production in 2018, the phone is still technically in Apple's modern lineup, and the company has a marginal presence in the Indian smartphone market because wages and "premium" pricing -- exacerbated by import costs -- often put a new iPhone out of the average person's reach. The company has enjoyed some success within the high-cost segment.

Apple has often resorted to selling iPhones considered outdated in other markets. The iPhone 6 was estimated to account for as much as a third of Indian iPhone sales in 2017.

The executives quoted by the Times suggested that the cost of the 6s Plus could be further reduced by 5 to 7 percent with local manufacturing, at least once Wistron is able to grow capacity. The company is also said to be talking to parts makers and other assemblers like Foxconn about expanding their Indian presence. Apple has already added two more sourcing partners in India, namely Salcomp and Shenzhen YUTO Packaging Technology, allowing it to secure adapters, chargers, and packaging.

There are now said to be five supplier plants in India, versus the single facility Apple had about a year ago.

Apple has been rumored as wanting to launch an "iPhone SE 2" sometime this year, possibly even assembling it exclusively in India. That's unlikely however, since though the SE is due for an update the company would need capacity beyond what Wistron has in India to meet global demand.

Aside from getting around import fees, local manufacturing may also help pave the way for the country's first Apple stores. Single-brand retailers such as Apple must normally meet a 30 percent sourcing requirement, which has stopped the company from making any concrete plans.

Comments

  • Reply 1 of 16
    foggyhillfoggyhill Posts: 4,736member
    Cuttng cost in India, since India has onerous import tarifs on imported devices.
    racerhomie3watto_cobraairnerd
  • Reply 2 of 16
    GeorgeBMacGeorgeBMac Posts: 2,757member
    Perhaps the most significant part of this story might be on the impact of this on iOS.

    Year by year prior models of iPhones get slower as the newer version of iOS (designed to exploit the abilities of the newest processors) places increased demands on their older, slower less flexible processors.

    Does this mean that future versions of iOS are less demanding of older processors?
    Or maybe, Apple could customize its newer versions of iOS to run more efficiently on older processors?

    Most companies would simply put this older, 3 year old, processor out there and let it run like dog -- particularly in a year or two.   But that doesn't sound like the Apple I know...
    watto_cobraairnerd
  • Reply 3 of 16
    rogifan_newrogifan_new Posts: 3,177member
    Perhaps the most significant part of this story might be on the impact of this on iOS.

    Year by year prior models of iPhones get slower as the newer version of iOS (designed to exploit the abilities of the newest processors) places increased demands on their older, slower less flexible processors.

    Does this mean that future versions of iOS are less demanding of older processors?
    Or maybe, Apple could customize its newer versions of iOS to run more efficiently on older processors?

    Most companies would simply put this older, 3 year old, processor out there and let it run like dog -- particularly in a year or two.   But that doesn't sound like the Apple I know...
    I thought Apple already did this? Unless it’s still not working well?
    muthuk_vanalingam
  • Reply 4 of 16
    FatmanFatman Posts: 149member
    India puts costly barriers up for companies like Apple. So... they will get Apple products, but old Apple products. That's what their government has created. Apple will not sacrifice profit margin, and they shouldn't. So if they can increase market share, and make money selling older phones - then fine. Unfortunately, the Indian citizens get the raw end of the deal because of their government's policy. That's why their best and brightest come to the US for the latest technology, education and opportunity!
    watto_cobra
  • Reply 5 of 16
    It’s still faster than 99% of the phones in India.
    That 1% being newer iPhones.
    watto_cobra
  • Reply 6 of 16
    mike54mike54 Posts: 247member
    I'm not a fan of Tim Cook increasingly pushing as old products. I guess this is the new Apple.
  • Reply 7 of 16
    avon b7avon b7 Posts: 2,641member
    Fatman said:
    India puts costly barriers up for companies like Apple. So... they will get Apple products, but old Apple products. That's what their government has created. Apple will not sacrifice profit margin, and they shouldn't. So if they can increase market share, and make money selling older phones - then fine. Unfortunately, the Indian citizens get the raw end of the deal because of their government's policy. That's why their best and brightest come to the US for the latest technology, education and opportunity!
    India, like China is a country of contrasts. Most countries with very high populations are. Many Indian people who end up working abroad do so, not for the education or technology, but because they have the education already and the country of destination needs the talent.

    Some citizens of India 'lose out' on the latest and greatest but so do US citizens. Try walking into a US store and picking up a P20 Pro (arguably the best phone release of the year). Government policy has an impact in the US too. 
  • Reply 8 of 16
    Eric_WVGGEric_WVGG Posts: 426member
    Never believed those SE 2 rumors in the first place. Sigh.
    edited April 13
  • Reply 9 of 16
    mike54 said:
    I'm not a fan of Tim Cook increasingly pushing as old products. I guess this is the new Apple.
    Dude most Indians use phones as slow as the iPhone 4S.

    watto_cobra
  • Reply 10 of 16
    avon b7 said:
    Fatman said:
    India puts costly barriers up for companies like Apple. So... they will get Apple products, but old Apple products. That's what their government has created. Apple will not sacrifice profit margin, and they shouldn't. So if they can increase market share, and make money selling older phones - then fine. Unfortunately, the Indian citizens get the raw end of the deal because of their government's policy. That's why their best and brightest come to the US for the latest technology, education and opportunity!
    India, like China is a country of contrasts. Most countries with very high populations are. Many Indian people who end up working abroad do so, not for the education or technology, but because they have the education already and the country of destination needs the talent.

    Some citizens of India 'lose out' on the latest and greatest but so do US citizens. Try walking into a US store and picking up a P20 Pro (arguably the best phone release of the year). Government policy has an impact in the US too. 
    Keep on dreaming honey. no ones gives a rats ass about P20 . Samsung can’t even sell their S9 well.
    Stop trying to defend stupid government tariffs.I hate that Indian government protects their crappy companies because they think they know better than the citizens.
    edited April 13 watto_cobra
  • Reply 11 of 16
    Perhaps the most significant part of this story might be on the impact of this on iOS.

    Year by year prior models of iPhones get slower as the newer version of iOS (designed to exploit the abilities of the newest processors) places increased demands on their older, slower less flexible processors.

    Does this mean that future versions of iOS are less demanding of older processors?
    Or maybe, Apple could customize its newer versions of iOS to run more efficiently on older processors?

    Most companies would simply put this older, 3 year old, processor out there and let it run like dog -- particularly in a year or two.   But that doesn't sound like the Apple I know...
    Dude iPhone 5S works more than fine on iOS 11.3 
    Most slowdowns are due to OS bugs which get resolved. I still know a person who uses an iPhone 2G as his regular phone.
    If you are facing slowdown from an iPhone 6 , turn off Low Power .
    If still facing slowdown, wipe the phone , and restore your data again from iCloud or iTunes.
  • Reply 12 of 16
    foggyhillfoggyhill Posts: 4,736member
    avon b7 said:
    Fatman said:
    India puts costly barriers up for companies like Apple. So... they will get Apple products, but old Apple products. That's what their government has created. Apple will not sacrifice profit margin, and they shouldn't. So if they can increase market share, and make money selling older phones - then fine. Unfortunately, the Indian citizens get the raw end of the deal because of their government's policy. That's why their best and brightest come to the US for the latest technology, education and opportunity!
    India, like China is a country of contrasts. Most countries with very high populations are. Many Indian people who end up working abroad do so, not for the education or technology, but because they have the education already and the country of destination needs the talent.

    Some citizens of India 'lose out' on the latest and greatest but so do US citizens. Try walking into a US store and picking up a P20 Pro (arguably the best phone release of the year). Government policy has an impact in the US too. 
    Keep on dreaming honey. no ones gives a rats ass about P20 . Samsung can’t even sell their S9 well.
    Stop trying to defend stupid government tariffs.I hate that Indian government protects their crappy companies because they think they know better than the citizens.
    They're protecting their own internal graft (at every level from the national to the local level), just like the current US president wants to do.
    Protectionism craps out innovation, stops entrepreneurship and makes you vulnerable to a future ass whooping.
    The ones that get screwed the most are people in the country who buy overpriced shoddy "protected" goods; they get milked like cows.

    Most of India's industry is not competitive externally and thus mostly sells inside the country in a convoluted mess of supply chains and middle men.
    You get essentially no service since that chains means no one is truly responsible for the crap you buy; traceability of near zero.

  • Reply 13 of 16
    GeorgeBMacGeorgeBMac Posts: 2,757member
    Fatman said:
    India puts costly barriers up for companies like Apple. So... they will get Apple products, but old Apple products. That's what their government has created. Apple will not sacrifice profit margin, and they shouldn't. So if they can increase market share, and make money selling older phones - then fine. Unfortunately, the Indian citizens get the raw end of the deal because of their government's policy. That's why their best and brightest come to the US for the latest technology, education and opportunity!
    Close -- but you missed the mark:
    India does put tariffs on imported goods -- which is a primary reason why Apple is manufacturing phones there.  But that's not why Apple is making cheap phones there.  They're making cheap phones because much of India is still in 3rd world status and that's all the people can afford.
    watto_cobra
  • Reply 14 of 16
    GeorgeBMacGeorgeBMac Posts: 2,757member
    mike54 said:
    I'm not a fan of Tim Cook increasingly pushing as old products. I guess this is the new Apple.
    Why?  Apple gets to make money using older manufacturing facilities, technology and tooling.  And, more people get Apple products -- which spreads the fixed costs of their OS's and various ecosystems. 

    It seems like a win-win to me.
    watto_cobra
  • Reply 15 of 16
    GeorgeBMacGeorgeBMac Posts: 2,757member
    Perhaps the most significant part of this story might be on the impact of this on iOS.

    Year by year prior models of iPhones get slower as the newer version of iOS (designed to exploit the abilities of the newest processors) places increased demands on their older, slower less flexible processors.

    Does this mean that future versions of iOS are less demanding of older processors?
    Or maybe, Apple could customize its newer versions of iOS to run more efficiently on older processors?

    Most companies would simply put this older, 3 year old, processor out there and let it run like dog -- particularly in a year or two.   But that doesn't sound like the Apple I know...
    Dude iPhone 5S works more than fine on iOS 11.3 
    Most slowdowns are due to OS bugs which get resolved. I still know a person who uses an iPhone 2G as his regular phone.
    If you are facing slowdown from an iPhone 6 , turn off Low Power .
    If still facing slowdown, wipe the phone , and restore your data again from iCloud or iTunes.
    That's all been done.  It's still slow...   Really slow.... 

    I'm just hoping I can stand it till the 8S or 6.1" LCD comes out.
  • Reply 16 of 16
    Perhaps the most significant part of this story might be on the impact of this on iOS.

    Year by year prior models of iPhones get slower as the newer version of iOS (designed to exploit the abilities of the newest processors) places increased demands on their older, slower less flexible processors.

    Does this mean that future versions of iOS are less demanding of older processors?
    Or maybe, Apple could customize its newer versions of iOS to run more efficiently on older processors?

    Most companies would simply put this older, 3 year old, processor out there and let it run like dog -- particularly in a year or two.   But that doesn't sound like the Apple I know...
    Dude iPhone 5S works more than fine on iOS 11.3 
    Most slowdowns are due to OS bugs which get resolved. I still know a person who uses an iPhone 2G as his regular phone.
    If you are facing slowdown from an iPhone 6 , turn off Low Power .
    If still facing slowdown, wipe the phone , and restore your data again from iCloud or iTunes.
    That's all been done.  It's still slow...   Really slow.... 

    I'm just hoping I can stand it till the 8S or 6.1" LCD comes out.
    At a certain point, older hardware just won’t run the latest OS very well. iPhone 6 and earlier are pretty much at that point. There’s a big difference between between 1GB of RAM and 2GB.

    The A9/2GB platform of the iPhone 6S/2017 iPad and iPhone SE performs very well under iOS 11, and with Apple still selling those devices here in 2018, they believe they’ll be sufficiently performant with iOS 12 and 13, and probably even later versions of iOS as well. 
    hammeroftruth
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