Production will start at the plant in the coming months

Feb 17, 2017 09:53 GMT  ·  By

In the coming months, Apple will start assembling iPhone SE units in India at the plant recently built by manufacturing partner Wistron Corp, according to Reuters. Apple will reach a maximum output of 300,000 to 400,000 units, but initial production will be much lower.

Apple will be producing smartphones in India with the purpose of capturing a slice of the growing phone market. Apple’s partner Wistron is expected to assemble iPhone SE units in a new facility in Bengaluru, at a plant built solely for this purpose.

Production will begin before the Indian government decides on Apple’s proposed economic concessions, although Apple didn’t officially say what concessions it’s aiming for. Reports say that the company is seeking lower tax rates and duty considerations.

Apple might have big long-term plans in India

The report quotes an Indian government official saying that “It is Apple's first such venture in India... The demands they have made are for the larger plans of the company to really scale up manufacturing in India.” The source also mentions that it’s too early to say which iPhones will be assembled in the future.

Apple shipped 2.5 million iPhones to India last year, while about a third of them were delivered in December. The tech giant is the 10th company in India’s smartphone market and the top in the premium segment with 62% market share in Q4 2016.

iPhone SE was sold upon its launch for $582, while its price tag has since dropped to about $447 for the 64GB variant. Local manufacturing and tax benefits could lower the smartphone’s price by 12%, in a market that offers many more affordable smartphone options.

The iPhone SE is one of the most affordable iPhones out there with its 12MP rear camera, 2GB of RAM, and Apple A9 chipset. It was announced last year and it carries a 1,625mAh battery and a 4-inch Retina display.