On Friday, an industry source with direct knowledge of the matter told that Apple Inc will in the coming months start assembling its lower-priced iPhone SE models at a contract manufacturer’s plant in the southern Indian technology hub of Bengaluru.
Wistron Corp, Apple’s Taiwanese partner is planing to set up a plant in Bengaluru to focus solely on assembling iPhones, a separate source told Reuters earlier this month.
Apple wants to lower the prices and for this purpose 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.
The Economic Times newspaper earlier on Friday reported Apple planned to initially assemble 300,000 to 400,000 iPhone SE handsets in India. The industry source told Reuters the numbers would be substantially lower to begin with.
Apple shipped 2.5 million iPhones to India last year, with a third coming in the December quarter, according to market researcher Counterpoint, which estimates that three-quarters of smartphones sold in India were made locally.
In the fourth quarter, Apple ranked 10th in India’s smartphone market but led the premium segment with a 62 percent market share, Counterpoint said.