Wistron Corp, Apple’s Taiwanese Manufacturing Unit is setting up a plant in Bengaluru to focus solely on assembling iPhones. Apple will commence the project beginning April of this year and will start with the low budget iPhone SE model targeting a sale of about 300,000 to 400,000 units.
Production of Apple’s first “Make In India” product is set to begin before the Indian government returns a final verdict on Apple’s proposed economic concessions. Apple had asked ask for a total exemption from duties on materials, components, and capital equipment as well as a a 15-year tax holiday on imported components and equipment, as well as a waiver on customs duties for the latter whether new or used.
Apple’s move to start manufacturing in India comes at a time when its sales in China, the company’s second-biggest market, are slowing. Meanwhile, India’s smartphone market is rapidly expanding and is likely to overtake the US to become the second-largest in the world. Indian mobile market is currently dominated by handsets that are way more cheaper than iPhones. Samsung, Xiaomi, Vivo, and other players hold a heavy share of the market with their devices sold at a price below $225.