Apple Will Start Producing iPhone In India In The Coming Months

17 February 2017, 12:00 pm EST By Amy Gordon Tech Times
Apple is expected to open its manufacturing plant in Bengaluru, India, in the coming months. This would be its first plant in India and will mainly focus on producing the iPhone SE for the Indian market.  ( Tomohiro Ohsumi | Getty Images )

After China, Apple is poised to open a manufacturing plant in India and now reports suggest that this facility may become operational in the coming months.

It is being reported that Apple will open its first ever manufacturing plant in the technological hub of the country, Bengaluru. Reports that Apple was looking to begin production of the iPhone in India by end April have surfaced online in the past.

Apple's India Manufacturing Plant

The latest report is courtesy Reuters and reveals that Apple not only will the new production unit open in the coming months, but it will focus entirely on the production of handsets. It is being said that the first iPhone that would be assembled in India may be the less expensive iPhone SE.

"Apple Inc will in the coming months start assembling its lower-priced iPhone SE models at a contract manufacturer's plant in the southern Indian technology hub of Bengaluru, an industry source with direct knowledge of the matter said on Friday," reported the publication.

Apple's manufacturing partner Wistron Corp is said to be setting up the plant in Bengaluru with the sole intention of assembling the iPhones.

Earlier reports had indicated how the company intended to produce 300,000 to 400,000 iPhone SE units, but recent reports share that the number shall be considerably lower.

The reason behind taking production over to the Indian market is to boost Apple's market share as India is one of the world's fastest growing mobile market. In India, smartphones of other companies are priced much lower when compared to Apple devices. With the cheaper iPhone SE being manufactured in the country, Apple would likely be able to sell the device at a considerably nominal price in India.

Apple has come with this expansion policy especially when the smartphone sales are slowing down in other Asian markets like China.

Even while the company is targeting to lower the prices of its devices, it has planned to set up local productions and is also involved in holding tax concession talks with the Indian government.

iPhone Sales In India

Apple reportedly shipped almost 2.5 million iPhones to India in 2016. However, the brand was still ranked tenth in the last quarter of 2016 in the country. That said, Apple led the premium smartphone space in India with a market share of 62 percent.

Apple bears almost 12 percent of the total manufacturing and production costs in form of import and excise duties on the iPhones. If Apple's India plans come to fruition, then the company shall be eliminated from paying all these costs, which could potentially lower the prices of the phones themselves as well.

All that Apple needs to work on after setting up its plant in India, is to popularize its brand and related products in the country. With a majority of the handsets from other OEMs available at a price lesser than $150, it could be possible that the current price of iPhone SE could eventually reduce from $424 in the country to lure more consumers.

Moreover, reports have hinted that the iPhone 8 may be manufactured at the company's India plant, which suggests that consumers in the region may get the device for a possibly cheaper price.

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