Tim Cook, CEO of Apple Inc with school children (Photo : Getty images/Yui Mok - PA Images)
Apple Inc will soon start assembling its low-priced iPhone SE models, at a contract manufacturer's plant in the southern Indian technology hub of Bengaluru.
The Taiwanese manufacturing partner of Apple, Wistron Corp is launching a plant in Bengaluru to give complete focus on assembling iPhones.
As reported by Reuters, Apple's forward step comes as the company's plans to boost its contribution in the world's fastest growing giant mobile market where the handsets are much cheaper than Apple's iPhones command. Additionally, this comes as smartphone sales uptrend is slowing in Asia's other huge market, China.
According to market researcher Counterpoint, Apple shipped 2.5 million iPhones to India with another third coming in the December quarter. Its also estimated that three-quarters of smartphones sold in India were made locally.
In the fourth quarter, Apple stood in 10th place in India's smartphone market while leading the premium segment with a market share of 62 percent.
India's smartphone market is controlled by Samsung Electronics Co Ltd and group of Chinese companies including Xiaomi and Vivo while huge stake of phones sold are priced below $225.
Comparatively, the entry level iPhone SE model sells on Amazon India site for $424.
Meanwhile, Appleinsider described according to The Economic Times reports that in April, the company will begin manufacturing the lower priced iPhone at a plant in Bengaluru, aiming at a final output as 300,000 to 400,000 units. Apple is bringing forth handsets within India's borders with a view to attract the segment of country's growing smartphone market.
Production is planned to begin prior to the Indian government gives a final verdict on Apple's proposed economic concessions. The company is expecting tax cuts and lower duty rates as an acknowledgement for launching its manufacturing business to 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 says.
Although Apple has long fought for appropriate government consideration in the region, primary iPhone SE production was reasonably not anticipated on the success of those talks.
