Tech

Apple iPhone SE manufacturing to start at Bengaluru in April, expected to come at cheaper price

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Recently, Apple Inc. announced that the company would set up a manufacturing unit of iPhones in Bengaluru, India. According to the latest updates, the Cupertino giant will start the manufacturing process in April this year with lower-priced iPhone SE variants.

With the new manufacturing unit, Apple seeks to capture a larger share of the fastest growing smartphone market in the world. The manufacturing unit will cut the transportation cost and import duties which will eventually make iPhones cheaper. iPhones at lower prices is a win-win deal as consumers will save their money while it will result in an increase in sales of iPhone.

As per the reports, the company is planning to assemble the iPhones initially, and it will start manufacturing process later. Initially, the reports suggest that Bengaluru plant will assemble around 3 lakh iPhone SE.

Apple INC although is the largest smartphone vendor in the world but it shares a small market in India which has the 2nd largest market for mobile phones with 300 million smartphone users, the number is more than that of U.S and a little less than of China.

This step will increase its growth in the country, manufacturing process here itself will bring the price down which will result in more sales as for now its high price restricts the population of middle-class users, which is in the majority, to afford it.

In 2016, the company ranked 10th position in India after shipping 2.5 million iPhones, it is known to be the best year for sales for Apple here, but it lagged other phone companies such as Samsung and Chinese brands such as Xiaomi, Oppo and Lenovo in terms of market share. In order to make a position, it had to take this step and asked for negotiations with the country. Till now, the import of done by local distributers.

Priyank Kharge, Minister of State for Information Technology and Biotechnology and Tourism said, “Apple’s representatives led by Ms. Priya Balasubramaniam, VP iPhone operations, Mr. Ali Khanafer (Head, Government Affairs), Mr.Dheeraj Chugh (Director, iphone operations) and Mr. Priyesh Povanna (Country Counsel) met with Ministers and officials of Government of Karnataka and had positive discussions about the initiatives in manufacturing and possible collaborations with state Government in other areas”.

India will be benefited in various ways by this step, not only the price of the phone will come down, but also, the profits will come in the country itself, and it will generate more jobs. Bangalore’s reputation will be enhanced too, and other foreign companies will look forward to investing in the state.

Apple CEO Tim Cook visited India in May 2016 for the same matter where he was interviewed; he said, “I feel really good about how we’re doing [in India]. We are in discussions on a number of things, including retail stores, and fully intend to invest significantly in the country and believe it’s a great place to be.”

Published on: Feb 18, 2017

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