Apple is defined to start manufacturing the iPhone SE (2020) in India according to a written report. The Cupertino giant is said to have taken this to avoid a 20 percent tax needed for importing the new iPhone model in the country. Apple’s Taiwanese contract manufacturer Wistron has reportedly been in the process of receiving components for manufacturing the smartphone in India. In 2017, Apple started manufacturing a few of its iPhone models in India to avoid import taxes and cater to the growing demand in the country. The company, however, has up to now domestically produced only older iPhone models.
At least one Apple supplier in China has been asked to start shipping components for the iPhone SE (2020) to Wistron in India from July The Information reported, citing an individual familiar with the situation. The move would help Apple steer clear of the import tax it would otherwise need to pay to bring the newest iPhone model in the united states.
Apple and Wistron both declined to comment on the development.
The iPhone SE (2020), that is the successor to the first iPhone SE, carries a starting price of Rs. 42,500. This translates to around $558, which is $159 higher than the $399 (roughly Rs. 30,400) price applicable in the US market.
Apple launched the iPhone SE (2020) in India in April — along with its debut in worldwide markets. The new model is designed to take on various Android phones of its price segment.
It is very important to remember that the iPhone SE (2020) units which can be currently available in India are manufactured in China. However, the government recently launched its production-linked incentive (PLI) scheme to start pleasing domestic assembling and manufacturing of mobile phones in the country. Manufacturers including Foxconn and Wistron, which both supply finished devices to Apple, have previously boosted their local production.
Some reports even ahead of the launch of the iPhone SE (2020) suggested its manufacturing India development. Apple didn’t make any official revelations on that front at the time of its launch, though.
Focus on India gets deeper
Apple kicked off its domestic manufacturing in India back in May 2017, and the initial model which was produced locally was the iPhone SE. The company carried out the assembly process with Wistron at its Bengaluru facility. However, additionally, it started manufacturing iPhone models at Foxconn’s manufacturing units in the united states.
In October 2019, Apple expanded the product range of its India-made iPhone models by starting manufacturing the iPhone XR locally in the united states.
A report by Counterpoint Research unveiled that the iPhone shipments in India grew 78 percent in the first quarter of this year, thanks to the iPhone 11. The iPhone SE (2020) is probably to further increase shipments in the coming future.
As shipments are increasing, Apple is planning to bolster its presence in India. CEO Tim Cook in February revealed that the company is defined to establish its web store later this season, while its physical outlets are in the pipeline for 2021. A report suggested that Apple would start its on line sales since the third quarter. The domestic manufacturing would help address local demand.
Is iPhone SE the greatest ‘affordable’ iPhone for India? We discussed this on Orbital, our weekly technology podcast, which you are able to subscribe to via Apple Podcasts or RSS, down load the episode, or just hit the play button below.