Apple to start producing iPhones in India in the coming months

The motive bedhing asembling iPhone SE handsets in India is to lower manufacturing costs. For some time Apple has been looking to set up local production and has also been in discussions with the Indian federal government regarding issues such as tax con

After numerous talks between Apple Inc. and the Government of India regarding the former getting special tax concessions to begin manufacturing in the country, Apple has chose to go forward without their consent.

Apple's Taiwanese manufacturing partner Wistron Corp is setting up a plant in Bengaluru to focus exclusively on assembling iPhones even as the Cupertino major seeks tax concessions from the Indian government to set up local production in the world's fastest growing major mobile market.

Aiming to compete in a market where the majority of smartphone volumes belong to the entry and mid level segment, Apple has made a decision to assemble the iPhone SE at its yet to be operational Bangalore unit. Locally assembled models will bring down the phone's price considerably. Apple will reach a maximum output of 300,000 to 400,000 units, but initial production will be much lower.

It was few days back when Priyank Kharge, IT minister of Karnataka, India, took to Twitter to announce that Apple would soon start manufacturing iPhones in India.

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Apparently, Apple doesn't wish to wait on the Government's approval for the tax concessions it had sought before beginning operations.

iPhone SE was sold upon its launch for $582, while its price tag has since dropped to about $447 for the 64GB variant. In comparison, the entry level iPhone SE model sells online for as high as Rs 28,433. Now, some previous reports claimed that Apple might go for iPhone 5S but have finally chose to go with iPhone SE keeping in mind the future developments in both software and hardware department.

Apple shipped 2.5 million iPhones to India previous year, while about a third of them were delivered in December.

"While the immediate advantage would be the tax benefit of 10-12% if it is manufactured (here) compared with imports, it will also give Apple an edge in India, which is the fastest-growing large market, as opposed to slow growth in China", Navkendar Singh, senior research manager, client devices, at IDC India, told ET.