Apple To Start Indian Manufacturing Unit with iPhone SE Assembly First

Apple is set to start assembling its lower-priced iPhone SE in India in the coming months, an industry source with direct knowledge of the matter told Reuters on Friday.

All iPhone SE units will be made in a facility that Apple’s contract manufacturer will set up at Peenya on the outskirts of Bengaluru. All devices will be targeted at the domestic market.
Apple has asked for a 15-year tax holiday and other incentives from the Indian government for starting iPhone manufacturing on a large scale in the country.
“It is Apple’s first such venture in India… The demands they have made are for the larger plans of the company to really scale up manufacturing in India,” a senior government official told ET, requesting anonymity.
Wistron, the contractor and manufacturing partner setting up the plant for Apple in India, will have the factory ready for assembling phones from April.

An immediate benefit of Apple starting iPhone SE assembly in India will be a tax saving of 10-12 percent. It remains to be seen, though, if Apple will pass on the full benefit to Indian consumers or not. Locally manufacturing iPhones in India will allow Apple to save on duties that can allow the company to better price its handsets in the country. For now, despite selling a record 2.5 million iPhones in India last year, Apple has very little presence in the fastest growing smartphone market in the world due to the high prices of its products. Apple wanted to sell refurbished iPhones in India in a bid to cater to a wider audience, but its request was turned down by the Indian government.

Source: Reuters


 


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