Apple with over 2 percent smartphone market share in India has officially begun making iPhones at its Bengaluru facility. Apple today announced that they have commenced the assembling of its cheap phone model yet, the iPhone SE.
The Cupertino-based company’s ambitious movie is the first step in establishing a strong foothold in the country, which is emerging as the fastest-growing smartphone market in the world. Apple will be building iPhone SE units in little volume at its Wistron’s plant in Karnataka and shipping to consumers will begin sometime next month.
With more than 1.3 billion people, India is considered as the potential market for businesses and that too, the likes of premium phone have increased in the recent years. But, Apple has to comply with Indian laws that demands brands to sell 30 percent of products that are locally made. This was the reason Apple couldn’t able to open its retail stores in the country as well as the local law didn’t allow the company to import refurbished iPhones for sale.
The iPhone SE is currently retailing at $320 in incremental and the price is likely expected to drop in the near future with the production goes on full phase. Currently, the Indian smartphone market is being dominated by Chinese phone makers with around 50% of market share followed by Samsung that accounts for around 25% and the rest is occupied by other brands.
Indian has been pushing foreign players to start their manufacturing hubs in the state for a long time under Narendra Modi’s “Make in India” initiative, offering jobs to locals. Indian retailers are expecting the price of the iPhone SE to drop by $100, but Apple is a company that could never compromise its profit margins on iPhones. But they have to do that to win the likes of the Indians.