US tech giant Apple, which manufactures the iPhone Phones, has started production of its flagship iPhone11 in India. This is the first time the company is making any of its top models in India. The phone is being made at Foxconn's plant near Chennai. This will strengthen the Government's Make in India campaign.
Two senior industry officials said that its production will be increased in a phased manner and Apple may consider exporting the iPhone 11 made in India. This will reduce the company's dependence on China. However, the company has not reduced the price of the iPhone 11 handset as it also sells handsets made in China and India. But later its price can be reduced. Local production will save 22% import duty.
According to officials, Apple is planning to build its new iPhone SE at the Wistron plant near Bangalore. This unit used to be the previous model of iPhone SE which was withdrawn. Apple is expanding its production in India to take advantage of the government's Production Linked Incentive (PLI) scheme. An official said that this would help the company reduce its dependence on China as the US-China relationship is not doing well at the moment.
Apple India did not respond to queries sent to it. Earlier, Apple plans to increase production in India. Pegatron, another contact manufacturer of the company, was recently registered as a subsidiary company in India.
Apple launched three new models in September, of which the iPhone 11 is the highest in India. According to officials, models made in the country have already reached the stores. Apple manufactures two more handset models in India. The iPhone XR is made in the Foxconn plant and the iPhone7 Vistron factory.
Apple India had revenue of Rs 10538 crore and profit of Rs 262 crore in 2018-19. According to IDC India, its share in the Indian market was 2-3% during January-March. But the company had a 62.7 per cent stake in the premium segment ($ 500 and above).