Tech giant Apple has started manufacturing its frontline iPhone 11 model at its Chennai plant. This paves the way for the company to make the best smartphones available in India at affordable prices, as it eliminates the customs duty levied on it. Apple manufactures the iPhone 11 from its Foxconn plant in Sriperumbudur near Chennai. Foxconn makes Apple iPhones on a contract basis.
Earlier, Foxconn had manufactured iPhone 7, iPhone XR, iPhone SE and iPhone 6S models at its plant in Sriperumbudur. On Friday, Commerce and Industry Minister Piyush Goel and Information Technology Minister Ravi Shankar Prasad lauded the move, saying it was a confirmation of the government's move towards a 'self-sufficient India'. According to tech media sources, this will be the beginning of a new era for Apple as it prepares to launch its second generation iPhone SE handsets in India.
The cheapest handset on Apple's list starts at Rs 42,500. There are reports that iPhone sales will increase before the next frontline launches by the end of September. The assembly process will take place at the iPhone 11 Foxconn's Chennai plant. Earlier, the iPhone 11 models manufactured at the plant in China were launched in India and other markets. According to Counterpoint Research, Apple is one of the fastest growing brands in India in the second half of 2019.
Its iPhone XR models have been priced several times lower. Localizing the production of newer models like the XR has led to lower prices. As Apple plans to shift 20% of its smartphone production from China to India, preparations are well underway as the government announces a manufacturing-related incentive scheme. Production of the iPhone XR model in the country is now nine months after Apple's iPhone maker Foxconn started manufacturing the iPhone XR in India with an investment of Rs 7,500 crore in South India.
Apple phones were first manufactured in India in May 2017. The iPhone SE was manufactured at Wistron's unit in Bangalore. It later began manufacturing phones at Foxconn's plants across the country. Apple launched the iPhone XR in India locally in October last year. Following record sales in September, the maker of the iPhone, iPod and MacBook reported strong performance for the October-December 2019 period.
Apple has awarded the contract to Foxconn, Wistron and Pegatron for the production of the iPhone. According to reports, Foxconn plans to invest up to1 billion dollars to make the iPhone model assembly plant in India more convenient. The steps taken since April last year are expected to be completed by July 2019. In the luxury segment, Apple gained 2-3 percentage points to 52-53 percent, according to analyst Tech.