Apple is reportedly planning to assemble its new iPhone SE (2020) in India. The Cupertino giant is said to have taken this step to avoid a 20 percent tax needed for importing the new iPhone model in the country.
The iPhone maker has already asked one of its suppliers in China to start shipping components for the iPhone SE 2020 to its manufacturing partner Wistron in India. Assembling the iPhone SE 2020 under the ‘Make in India’ initiative will help the company in avoiding the 20 percent tax on its imported phones and reducing the price of the device in India.
Apple’s Taiwanese contract manufacturer Wistron has reportedly been in the process of receiving components for manufacturing the smartphone in India. In 2017, Apple started manufacturing some of its iPhone models in India to avoid import taxes and cater to the growing demand in the country. The company, however, has so far domestically produced only older iPhone models.
This news comes at a time when the Indian government has also started an initiative to increase manufacturing in the country.
Focus on India is getting deeper since Apple kicked off it’s domestic manufacturing in India back in May 2017, and the first model that was produced locally was the iPhone SE. The company carried out the assembly process with Wistron at its Bengaluru facility.
In October 2019, Apple expanded the range of its India-made iPhone models by starting manufacturing the iPhone XR at Foxconn’s manufacturing units in the country.
Apple is reportedly seeking to shift roughly a fifth of existing China-based output to India, which could equate to $40 billion in local manufacturing revenues over the next five years.
At least one Apple supplier in China has been asked to start shipping components for the iPhone SE (2020) to Wistron in India from July. The move would help Apple avoid the import tax it would otherwise need to pay to bring the new iPhone model in the country.
Apple and Wistron both declined to comment on the development.
Apple launched the iPhone SE (2020) in India in April — alongside its debut in global markets. The new model is designed to take on various Android phones of its price segment.
The iPhone SE (2020), which is the successor to the original iPhone SE, carries a starting price of Rs. 42,500. This translates to around $558, which is $159 higher than the $399 (roughly Rs. 30,400) price applicable in the US market. Now if Apple goes forward with its decision, iPhone SE (2020) will be available for as low as Rs. 38,900.