Apple has started manufacturing its top of the line iPhone 11 in India through its manufacturing partner Foxconn. Though Apple has previously manufactured iPhone models in India, this is the first time they are doing it with their flagship models. Apple is said to be considering a plan to make the new iPhone SE at the Wistron plant near Bengaluru, the executives said. The unit used to produce the earlier iPhone SE, which was been withdrawn.
Apple currently is making its iPhones in India at two metropolitan cities, Chennai and Bengaluru with Foxconn and Wistron respectively. Although there is no news about any changes in the prices at which the phones will be sold, industry executives say that the price reduction is a possibility in the future once the production ramps up and all the iPhones sold in India will be assembled in India.
Currently, only a minority of the iPhones sold in India are assembled locally, hence the scope for price reduction is not viable. Apple currently pays 22% in import duties for the iPhones that are made in China and because of this India is amongst the list of countries where iPhones cost a lot more than the US. Apple is responsible for only as much as 1% of the Indian smartphone market share, this step may help them capture more of the fastest-growing smartphone market in the world.
This announcement comes as a good boost to the Make in India movement that is backed by the Indian government to encourage companies to make their products in India. This move is also appreciated by many Indian officials as they are looking for ways to reduce their reliance on China.