Highlights:
- Apple to start iPhone SE (2020) manufacturing in India
- Wistron, reportedly, will be manufacturing the device for Apple
- iPhone SE (2020) is the successor of the original iPhone SE which came out in 2016
The US-based tech giant, Apple, is all set to start manufacturing the iPhone SE (2020) in India as per a report. The Cupertino based giant is said to have taken this huge step in order to avoid the gigantic 20% tax which is imposed on importing of the new iPhone model in the country.
Apple’s Taiwanese contract manufacturer, Wistro, has reportedly taken up the process to receive the components for manufacturing the iPhone SE (2020) in India.
Back in 2017, Apple began manufacturing iPhones in India to avoid the huge import duties and at the same time cater to the growing demand of its products in India, however, so far the company has only manufactured older iPhone models in India.
At least 1 Apple supplier in China has been asked by the company to begin shipping the components for the iPhone SE (2020) to Wistron in India from July 2020, as reported by The Information, which cited a person familiar with the development. This move of manufacturing the iPhone SE (2020) which was launched this year will help Apple save a huge amount of sum as import tax which it otherwise would have paid to the government if it brought the assembled phone in India.
Both Apple and Wistro have maintained silence of this development.
The iPhone SE (2020), which is the successor to the original iPhone SE carries a price tag of Rs. 42,500 for the base model, this translates to around $558, which is $159 higher than the price in the US market.
On the 22nd April 2020, Apple launched the iPhone SE (2020) in India, which was also the global launch. This iPhone variant has made an entry in the market to take on company’s rival in the mid-range segment.
The current iPhone SE (2020) available in the Indian market are manufactured in China, however, the government recently launced its Production-Linked Incentive (PLI) schene to begin the domestic assembly and manufacturing of the phones in India.
The manufacturers including Foxconn and Wistron, which both supply the finished devices to Apple, have boosted their local production.
In May of 2017, Apple began the local manufacturing in India, and the first ever phone which was produced locally was the first generation iPhone SE. Apple carried out the assembly process with Wistron at its Bengaluru facility. However, it also started manufacturing iPhone models at Foxconn’s manufacturing units in India.
Later, in October of 2019, the US based tech giant expanded the range of its iPhones made in India as it started manufacturing the iPhone XR in India.
A report from Counterpoint Research claims that iPhone shipments in India has grown by 78% in the first quarter of 2020 alone owing to the popularity of iPhone 11. It is likely that iPhone SE (2020) will only further increase the shipments.
As the shipments of Apple products in India are increasing, the company is trying to cement its presence in the country. In February, Chief Executive Officer (CEO) of Apple, Tim Cook, said that the company will soon establish its own online store in India, while its physical outlets will come to India by 2021.
According to a report, Apple could start its online sales as early as the third quarter in India.
The domestic manufacturing would help address local demand.
