Apple iPhone SE (2020) may soon come with 'Assembled in India' tag

In April, Apple launched the eagerly awaited budget mobile iPhone SE (2020), the successor of the original iPhone SE (2016). It was a long overdue but finally made it this year.

Currently, the price of Apple iPhone SE (2nd Gen) starts at Rs 42,500 in India, a bit more compared to the US market ($399, approx. Rs 30,425 based on the Forex rate at the time of writing this piece). The huge difference is due to the recently hiked Goods and Services Tax (GST) rate from 12% to 18% and also the custom duty for importing the device to India adds to the MRP.

However, the price of the iPhone SE (2020) is likely to come down in the coming months, as Apple has given a nod to Chinese supply partner to deliver components to the Taiwanese contract manufacturer Wistron Corp to build iPhone SE (2020) in India, reported The Information.

Wistron Corp has a factory unit in Bengaluru, where it is currently assembling iPhone 6S and iPhone 7.

Previously, Wistron also used to mass-produce the original iPhone SE and iPhone 6 in Bengaluru until it got discontinued in early 2019.

Locally assembled iPhone SE (2020) is likely to get price-cut in India, as Apple won't be needing to cop out any import taxes and will pass on the benefits to the consumers in India.

There is no word on when the mass production is expected to start in the Wistron, but it is expected to receive the components of the iPhone SE (2020) as early as July.

Must read | Apple iPhone SE (2020) review: Dainty but Powerful!

Though Apple has made significant inroads in the premium phone segment in India, its overall market share a meager 2-percent. The latest iPhone 11 series (2019) and the previous iteration iPhone XR (2018) are big hit and continue to make good sales in India.

Must read | iPhone 11 review: The go-to Apple mobile of 2019

Apple's second contract manufacturer Foxconn is also assembling iPhone XR at its plant in Tamil Nadu.

Must read | Apple iPhone XR 'Assembled in India' hits stores

(Left) Apple iPhone 11 and iPhone XR (right). Credit: DH Photo/KVN Rohit

The emergence of COVID-19 pandemic from China has caused a massive financial impact on hardware companies and having learned the lesson of not putting all eggs in a single basket, they are trying to diversifying the manufacturing process and shifting some plants to neighbouring countries such as India, Vietnam, Bangladesh, and Thailand.

The news of local assembling of the iPhone SE (2020) in India comes weeks after the report emerged Apple planning to shift 1/5th of the iPhone production to India. It is expected to make $40 billion (roughly Rs 3.11 lakh crore) worth business with just exports alone within the next five years. It will be the single biggest company to do so in India.

It should be noted that that the union government, in a bid to attract top multi-national companies particularly handset-makers such as Apple, Samsung, and even encourage local brands, announced the PLI (Production-Linked Incentive) scheme in April 2020. It is aimed to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components including Assembly, Testing, Marking and Packaging (ATMP) units, the government of India states in the official press note.

Furthermore, the PLI scheme includes an extension of the incentive of current 4% to 6% on incremental sales (over the base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year as defined.

The total cost of the proposed scheme is approximately Rs 40,995 crore, which includes an incentive outlay of approximately Rs 40,951 crore and administrative expenses to the tune of Rs 44 crore.

Must read | Make in India: Apple to shift big chunk of iPhone production from China to India

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