U.S. tech giant, Apple has commenced the production of iPhones in India, the Wall Street Journal reports. This report is coming barely three months after the tech giant was reported to have concluded plans to set up a manufacturing plant in the Indian state of Karnataka, south-western region. According to the report, the company has concluded a test run of its first-ever iPhone assembly plant in India and the model which was the first produced in the plant is the iPhone SE.
The iPhone SE is Apple’s cheapest iPhone model and it is just apt that it comes out as the first to be assembled in India. The plant is run by Apple’s Taiwanese contract manufacturer Winstrop Corp., and it is indeed located in the state of Karnataka. The Wall Street Journal quoted its source to be a state official who is familiar with the matter. However, a Winstron spokeswoman was quoted to have responded to inquiries by saying the company doesn’t comment on “market rumors or speculation.” On its part, Apple said in a statement that it has begun initial production of a small number of iPhone SE handsets in Bangalore and will begin shipping the Indian-made devices to domestic customers this month. An inside source also disclosed that the first devices could hit stores as early as this week or next.
With this latest development, India becomes the third country globally to assemble iPhones after China and Taiwan. Analysts believe it is a right move in the right direction, considering that Apple’s sales in China, one of its largest market, had taken a swift tumble from the top position for the first in a couple of years. India also has a vast market which Apple is obviously eyeing with this latest move. India will be a fitting alternative to China and Taiwan. Also, the siting of a plant in India would likely translate to a cheaper price tag for the iPhone considering that the company will not pay import tax and other charges attached to importation. The company is reported to have sought concessions on the taxes it pays to import some components as the Indian factory is part of the government’s “Make in India” drive.
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Also, the siting of a plant in India would likely translate to a cheaper price tag for the iPhone model, considering that the company will not pay import tax and other charges attached to importation. The company is reported to have sought concessions on the taxes it pays to import some components as the Indian factory is part of the government’s “Make in India” drive. This may however not be the case as Apple prefers to keep its price consistent worldwide. But we are encouraged by reports that the iPhone SE is currently on sale in India for around $320, lesser than the $399 price tag it carries in the U.S. Thus, the price could come down to about $100 less if the tech giant starts shipping from the plant in India.
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