New Delhi | Jagran tech Desk: Apple has started to make its flagship iPhone 11 right at the heart of Indian manufacturing hub near Chennai, where its FoxConn plant is located. The Cupertino-based premium smart-gadget maker, for the first time ever, will manufacture its annual flagship gadget in India in a bid to reduce its dependence on Chinese manufacturing ecosystem.

According to an Economic Times report, the production of iPhone 11 will be increased in phases, and the premium smart-gadget maker is also considering to export its India-made iPhone 11 elsewhere. The company majorly used to sell its China-made iPhones in India, but manufacturing from Chennai will save it 22 per cent import duty. The product-supply of the India-made iPhone has already reached the stores across the country. The Foxconn plant also makes iPhone XR which continues to reach the stores all over the country.

The report says that Apple is also considering to make iPhone SE at its Wistron plant near Bengaluru, which earlier used to manufacture previous editions of iPhone SE, and currently manufactures iPhone 7.

The latest move, according to an Apple Executive, marks the trend of growing localisation practices in India, in the wake of benefits Apple is keen to take under Production Linked Incentive (PLI) scheme of the government. This also helps the company to expand its production based beyond China when the US-China relations are continuing to deteriorate.

Production Linked Incentive scheme, notified last year for large scale electronics manufacturing, is meant to provide an incentive of 4% to 6% on incremental sales of goods manufactured in India and covered under target segment.

In another major development of establishing significant operation base in India, recently, Apple's contract manufacturer, Pegatron, was registered as a subsidiary in India.

iPhone 11 is the biggest seller in India, of a the three devices that Apple launched last September. A Forbes' story suggests that there is ‘strong demand’ for iPhone 11 all over the world, with the premium smart device set to contribute majorly in Apple's FY20 revenues.

Posted By: Abhinav Gupta