12 July 2019
Apple Inc has been trying to grab a bigger share of the Indian smartphone market for a while now. The company is now planning to assemble its iPhone 7 at its supplier Wistron's facility in Bengaluru. Currently Wistron assembles the iPhone 6S in the country.
"We are proud to be producing iPhone 7 in Bengaluru for our local customers furthering our long-term commitment in India," Apple stated. The assembling of the Apple iPhone 7 began last month in India.
Wistron had announced plans to invest Rs. 3,000 crores in the Narasupra industrial sector in Karnataka's Kolar district last year and had started assembling low-end iPhone SE and later iPhone 6S phones at its manufacturing unit. The company plans to set up an iPhone making unit in the 43 acres of land allotted to it, which would create employment for more than 10,000 people. The upcoming facility would also manufacture a wider range of Apple's devices.
Apple Inc has been trying to make deeper inroads in India, where over 450 million people use smartphones, and assembling the iPhone 7 would be another step towards gaining more ground in the country.
Tarun Pathak, Associate Director at Hong Kong-based Counterpoint Research, stated that the Indian electronics market is growing fast and is set to grow significantly over the coming months than other global countries. "I think to start with, it makes sense for Apple to localise assembling of models that have the potential to scale up and then slowly expands it to entire portfolio," Mr Pathak stated.
In India, pricing remains a key factor, with Apple iPhone prices being steep the Indian consumers have turned to cheaper alternatives like OnePlus which gained share in the country last year with its OnePlus 6 smartphone. Apple is now reportedly reducing prices of its devices in several countries including China where it has lost its market share. By assembling the iPhone 7 in India, it may cut down its price here which will help increase its market share.