The new Wistron plant in India includes the assembly of printed circuits (PCB) for the iPhone, a novelty for the Taiwanese manufacturer, which will allow Apple to avoid import taxes on this component.
A circuit board is one of the key components of an iPhone. It allows the different components to be interconnected with each other. This usually accounts for about half the cost of a smartphone. Its assembly in India will be a great advantage for Apple. Indeed, the firm will thus avoid the 20% tax that will be applied by the government of Prime Minister Narendra Modi from next April on PCB imports to encourage local production and create new jobs.
Reuters said assembly of these circuit boards will take place at the new Wistron plant, located about 40 miles from Bangalore. It will be fully operational from April. The other Wistron factory has been active since 2017 and already produces iPhone SE, iPhone 6S and iPhone 7.
Wistron's biggest rival, Foxconn, which started manufacturing the iPhone XR in India last year, already assembles PCBs locally. India remains highly dependent on China for the supply of smartphone components. Wistron's decision helps Apple further detach itself from China and move all of its production to India.
Apple seems to be focusing heavily on this country, so much so that it plans to open an online Apple Store in India to begin official online sales of the iPhone, iPad, Mac from the third quarter of 2020.