Apple Incorporated became a big company since Steve Jobs shared iPhone to the world. Touch screen connectivity has never been the same since then. Apple is an American multi-national technology company whose headquarters is in Cupertino, California. It designs, develops, and sells consumer electronics, computer software, and online services. As Apple evolved into becoming a hardware and software provider, the need for expansion is evident. As brand loyalty is maintained across users around the world, its value increases through time. With this, Apple is finding ways to provide the market a cheaper product but still match the company’s approved standards.
In line with this, Apple has found a way by manufacturing iPhone SE in India. Manufacturing this product has become one of the most fast-growing divisions in India. Prime Minister of India, Narendra Modi even launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy. The country’s vision is to become the fifth largest manufacturing in the world by end of 2020. This may seem ambitious, but it is attainable judging by the rate of investors flooding into the state. Apple is one of them. The company partnered with Wistron Corporation, which upgraded their plant in preparation for the assembly of iPhones.
Wistron Corporation is an ODM (original design manufacturer) that provides a variety of support services related to design, manufacturing, and after-sales service for information and communication technology (ICT) products. Wistron plant is located in Bengaluru. This move by Apple aims to boost local production of its lower-priced models infiltrating the fast-moving hub in India. This was done to lower the retail price of its handset thereby allowing more consumers to purchase the device. The iPhone SE is currently being sold at Amazon for 28,433 Indian Rupees. If the assembly will push through, the price could go down and it will then be able to compete with top brands like Samsung, Xiaomi and Vivo which are sold below 15,000 rupees.
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The company is still in talks with the government regarding tax and other matters. Last year, Apple shipped 2.5 million iPhones with a quarter being sold in India and were manufactured locally too. By the end of 2016, Apple ranked 10th in the smart phone market, with a market share of 62%. Production is said to start about two months from now. Another report stated that Wistron will also produce iPhone 6 and iPhone 6S models but no confirmation was given yet. Details about the said project have not been disclosed and both companies involved haven’t released any comment. News also came out that Apple is planning to move production to the United States.
According to the report, sources claim that Apple approached Foxconn and Pegatron, two manufacturing companies that are responsible for assembling iPhones. Foxconn is apparently exploring the possibility, while Pegatron has decline due to cost concerns. Trump showed support to the company by moving back its production in its motherland but analysts think otherwise. According to a source, if the plan for relocation to the US happens, the cost will likely double. Most suppliers of Apple for its parts are already in Asia, so moving away from the source would mean added costs.