Apple to Manufacture iPhone SE Units in India in the Coming Months

Pablo Tucker
February 17, 2017

Now, some previous reports claimed that Apple might go for iPhone 5S but have finally made a decision to go with iPhone SE keeping in mind the future developments in both software and hardware department.

However, as Reuters suggest, nobody is certain as to how Apple will reduce the price of the locally-assembled iPhone SEs for India.

And while it looks like Apple Inc has got the green signal from the Indian government, various reports are now indicating that in the coming months Apple could start assembling its lower-priced iPhone SE models at a contract manufacturer's plant in Bengaluru.

Now, why did Apple choose iPhone SE for the first lot?

The Economic Times reported on Friday that Apple planned to initially assemble 300,000 to 400,000 iPhone SE handsets in India, but an industry source told Reuters the numbers would be substantially lower to begin with. The reason is simple.

Selling for ₹28,000-30,000 on e-commerce portals, the iPhone SE is among the smaller and cheaper devices in Apple's stable and the company is likely to observe how fast they sell as a way to test waters in the Indian market.

While the device initially launched with a price tag of Rs. 39,000 ($582), it's now available at Rs. 30,000 (447); manufacturing it locally could help bring the cost down even further, thanks to tax benefits of about 12 percent.

(Apple) wish to "experience manufacturing in India". The iPhone SE now retails at around Rs. 30,000 in India.

To lower prices, Apple has been seeking to set up local production and has been in talks with the Indian federal government regarding issues such as tax concessions.

Launched in April 2016, the iPhone SE was squarely aimed at emerging markets, as its accessible price point was considered as an easy entry into the iPhone family.

Navkendar Singh from IDC claims that if Apple manages to grab even a sliver of the large chunk of users who consider Apple to be a reliable brand, it can do wonders.

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