Apple’s iPhone 16 could be CHEAPER than expected after new details about the device’s production are revealed

Apple’s iPhone 16 could be cheaper than previous models when it launches next month, according to a new report.

The price cut comes as the tech giant moves some of its high-end production to India, potentially reducing costs for locals by up to 10 percent.

However, the relatively low demand for iPhones in Asian countries means these cheaper models will likely be exported to buyers in other countries, including the US, at lower costs, the report said.

The iPhone 16 Pro is expected to start at $1,099, while the Pro Max will likely cost around $1,200.

Apple has ramped up production of its Pro iPhone 16 models in India for the first time since the company moved production from China to India in 2022.

Foxconn, the company’s main supplier, has started training thousands of workers at its factory in Tamil Nadu as the company races to produce the iPhone 16 Pro and Pro Max in time for their global launch.

iPhones have traditionally not been manufactured in India, leaving residents with no choice but to buy the latest model abroad and pay a higher price for it.

Apple has to pay 22 percent import duties and a 10 percent surcharge on the base price to import the devices, forcing the company to keep prices much higher in the country.

By assembling the devices locally, Apple hopes to reduce the cost of the latest iPhone in India by 10 percent, where the average price is $1,550.

“The production of Pro models in India will increasingly encourage customers to buy locally instead of purchasing the devices abroad as the price difference narrows,” said Sanyam Chaurasia, an analyst at research firm Canalys. Bloomberg.

“Various financing options, especially during the holiday season, will boost Apple’s domestic sales.”

The iPhone 16 is due out next month, and the planned assembly in India will mark the first time the Pro models will be produced outside China.

While Apple has been assembling iPhones in India since 2018, this is the first time the company is producing its iPhone Pro models outside China.

Other Apple partners like Pegatron and the Tata Group will also reportedly begin assembling the iPhone 16 Pro models in India soon after the launch.

Production in India is still a fraction of what is produced in China, but Apple reportedly hopes to increase production to 25 percent next year.

Meanwhile, an anonymous source told the The economic times that Apple could even produce the iPhone 17 exclusively in India.

The move comes after Prime Minister Narendra Modi introduced financial incentives by providing $28 billion in subsidies to companies to start manufacturing their products in the country.

The Prime Minister said companies should focus on ‘design in India, design for the world’ and urged them to create products that are suitable for both the international and domestic markets.

“India is known for its best quality. Now we need to focus on design in India for the world,” Modi said, the Company standard reported.

‘We must ensure that the Indian standard becomes the international standard.

“It depends on the quality of our production, service and approach,” he continued.

‘The day when India will be the centre of industrial production is not far away. The world will be looking forward to it.’