Apple's contract manufacturer Wistron has been assembling iPhone SE units in India for more than a year, and now a new report alleges that the supplier has reportedly entered trial production of the nearly three years old iPhone 6s Plus smartphone there.
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A limited run of “Assembled in India” iPhone SE models is now rolling from the assembly lines in India, run by Apple's contract manufacturer Wistron, but the Cupertino technology giant is now seeking extend tax breaks for its suppliers to build iPhones in the country from scratch.
Apple could export “Made in India” iPhone SE models
The Economic Times of India reported today that although Apple is in no hurry to assemble additional models in India beyond iPhone SE, it is allegedly planning to eventually expand production capacity and bring “Made in India” devices to overseas markets.
“Apple will focus on iPhone SE model both for India and overseas markets,” a government official said. “It is looking to start exports from India,” the person added.
Apple's manufacturer Wistron has been assembling a limited run of “Made in India” iPhone SE models for two months now in a facility set up at Peenya on the outskirts of Bengaluru.
Those phones currently don't ship overseas and don't carry a lower price tag even though they're made locally. Government officials aware of the matter say Wistron has not made any fresh request for approval.
“Apple will stick to making iPhone SE model at its Bengaluru plant for some more time and has no immediate plan to assemble its flagships iPhone 7 and iPhone 7 Plus in the country, according to the government source quoted earlier.
Just yesterday, the same publication reported of Apple's alleged plans to expand local production. According to that article, Apple could manufacture other iPhone models in India at a later stage and even set up a full-fledged manufacturing plant.
Apple is also planning to open its largest global store to date in India by 2020.
It's reportedly looking at 4-5 flagship outlets limited to metros over 5-10 years. The stores will be located at prime locations and should have enough class to make them tourist attractions.
Lastly, the Cupertino giant could launch a dedicated online store in India by October.
Apple planning to build its largest store ever for India
After kicking off local iPhone SE production in Wistron's manufacturing facility on the outskirts of Bengaluru, Apple is now planning to build its largest global retail store ever for India.
When finished, the outlet will be massive: 7-10 times larger than that of rival Samsung, covering between 10,000 and 15,000 square feet of retail space, or roughly double the size of its other global stores, The Economic Times of India reported yesterday.
In terms of raw footage, it's going to be Apple's largest global store to date. By comparison, the average global Apple Store size is about 8,500 square feet.
While the store may not open before 2020 because Apple is yet to receive approval from the government for its retail foreign direct investment plans, two industry executives said the firm would open other stores at prime locations either in a mall or high street, some of which could resemble the flagship Fifth Avenue store in New York City.
An excerpt from the article:
Apple Stores in India will be limited in number, the executives said. The company is looking at 4-5 flagship outlets limited to metros over 5-10 years. This is due to the fact that each store requires huge space to suit its architectural design, which makes them a retail destination in itself attracting even tourists.
Discussing the upcoming flagship store, one of the sources said:
Apple wants to initially set up two stores, one in New Delhi and second one in Mumbai, said one of the executives. They want the stores to be truly iconic right from the design to the location. However, getting desired space will take time since 10,000-15,000 square feet of prime location is not readily available.
At this size, It will be the biggest single-brand electronic stores in India.
The article states that Apple's retail team visited India last month to meet realtors and mall managers, understand the retail market, see potential sites and lay down specifications to the India team and real estate consultants. They reportedly signed non-disclosure agreement with various stakeholders regarding the store plans for 2020-2021.
The development marks a major change for the Cupertino tech giant given it currently sells iPhones through franchisee-run exclusive brand stores, multi-branded and neighbourhood stores and ecommerce marketplaces.
The same publication had earlier reported that the iPhone maker may initially start an online-only store in India by this year, which won't require an approval since the government allows companies to directly sell online locally manufactured goods.
Recently, Apple committed to running its Indian operations 100 percent from renewable energy by the end of this year.