An Apple supplier in China has reportedly been asked to start shipping components for the iPhone SE (2020) to Wistron in India from July.
Apple is set to start manufacturing the iPhone SE (2020) in India according to a report. The Cupertino veteran is said to have taken this step to avoid the 20 percent tax required to import new iPhone models into the country. Apple’s Taiwanese contract manufacturer Wistron is reportedly in the process of acquiring components for manufacturing smartphones in India. In 2017, Apple began manufacturing some of its iPhone models to avoid import taxes in India and to meet growing demand in the country. However, the company has so far produced only the old iPhone model.
At least one Apple supplier in China has been asked to introduce shipping components for the iPhone SE (2020) for Wistron in India from July. The move will help Apple avoid import tax otherwise it will need to pay to bring the new iPhone model into the country.
The iPhone SE (2020), which is the successor to the original iPhone SE, starts at Rs. 42,500. This translates to about $ 558, which is $ 159 more than the $ 399 (about Rs. 30,400) applied in the US market.
Apple launched the iPhone SE (2020) in India in April – with its debut in global markets. The new model is designed to take on various Android phones of its price segment.
It is important to note that the iPhone SE (2020) units currently available in India are manufactured in China. However, the government has recently launched its Production Linked Incentive (PLI) scheme to start domestic assembling and manufacturing of mobile phones in the country. Manufacturers including Foxconn and Wistron, who both supply Apple-ready devices, have already boosted their local production.
Even before the launch of the iPhone SE (2020), some reports suggested the development of its manufacturing India. Apple did not make any official disclosures on that front at the time of its launch, however.
Focus on India is deepening
Apple discontinued its domestic manufacturing in India in May 2017 and the first locally manufactured model was the iPhone SE. The company carried out the assembly process with Wistron at its Bangalore facility. However, it also started making iPhone models at Foxconn’s manufacturing units in the country.
In October 2019, Apple expanded the range of its India-made iPhone models by starting manufacturing the iPhone XR locally in the country.
A report by Counterpoint Research showed that iPhone shipments in India rose 78 percent in the first quarter of this year, thanks to the iPhone 11. The iPhone SE (2020) is likely to further increase shipments in the coming future.
As shipments are increasing, Apple plans to increase its presence in India. In February, CEO Tim Cook revealed that the company is set to set up its online store later this year, while its physical outlets are planned for 2021. A report states that Apple will begin its online sales as early as the third quarter. Domestic manufacturing will help to detect local demand.