Apple’s Great Indian Dream starts with the iPhone SE
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After numerous talks between Apple Inc. and the Government of India regarding the former getting special tax concessions to begin manufacturing in the country, Apple has decided to go forward without their consent.

The Cupertino giant has brought in the original design manufacturer, Wistron to start the assembly of their classic iPhone SE, at a Karnataka plant which is being set up by them, from April this year.

Also Read: Apple’s iPhone 8 will cost a bomb says noted analyst

But what about the government's approval?

Essentially, till Apple gets a nod from the Centre, they will be assembling the iPhone SE in India. Once they get the permission, the company will upscale their operations and begin manufacturing in the country.

A source acquainted with Apple’s plan told Economic times that they (Apple) wish to “experience manufacturing in India”.

Does this mean the prices of iPhone will drop?

In a nutshell, not by a long shot. Currently, the iPhone SE is retailing in India for Rs 29,999 which is almost Rs 9,000 less than its launch price of Rs 39,000 for the base model. Considering that the iPhone SE was aimed at developing countries like India where almost 70 percent consumers spend less than Rs 15,000 on a smartphone, Apple was not able to maintain a moderate price for the iPhone SE.

Apple also missed its target to sell more than 10 million iPhone’s in India last year.

Also Read: iPhone might lose the fingerprint scanner for virtual buttons

So what are Apple’s demands?

Last month, a team of Apple executives met with the officials of the Indian government to present their proposal. The company seeks a 15-year exemption of custom duty levied on imports and many other tax benefits.

“Apple wants to make India its third home (in addition to the US and China) and they want to manufacture in Karnataka. We want to support them. They (Apple) would first like to start with assembly and then go for manufacturing. There are some issues which are pending with the Centre. We have requested the Centre to look at it favourably,” RV Deshpande, Minister for Large & Medium Industries & Infrastructure Development, Government of Karnataka told the Economic Times.

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