Apple to starts initial production of iPhone SE in Bengaluru this month

The phones will be manufactured by Wistron, a Taiwanese OEM for Apple at Peenya in the cyber city.

The new iPhone SE is seen on display during an event at the Apple headquarters in Cupertino, California March 21. (REUTERS)

US tech giant Apple Inc on Wednesday  said it is beginning initial production of a "small number" of 'iPhone SE' in Bengaluru and will start shipping to domestic customers this month.

It will be the first time the smartphone maker will be assembling iPhones in India.

"We are beginning initial production of a small number  of iPhone SE in Bengaluru. iPhone SE is the most popular and  powerful phone with a four-inch display in the world and we'll begin shipping to domestic customers this month," Apple said in Bengaluru.

The Karnataka government had in February announced Apple Inc.'s proposal to commence initial manufacturing operations in Bengaluru.

The phones will be manufactured by Wistron, a Taiwanese OEM for Apple at Peenya in the city.

Karnataka IT minister Priyank Kharge had on March 30  said that Apple would be ready to start assembling high-end  iPhones in the city in less than a month to boost its chances  of gaining a foothold in the fast growing Indian market.

Local manufacturing is expected to help Apple price its phones more competitively in India as it currently attracts additional duty on imports.

Apple had asked for several tax and other incentives to enter India in the manufacturing sector.

The company has been ramping up its efforts to expand  its business in India, one of its fastest growing markets.

Apple is also keen on setting up retail presence in India and has sought relaxation in local sourcing norms.

The company has also announced opening of 'App  Accelerator' in Bengaluru, an initiative that would provide  support to Indian developers and enable them transform the  design and performance of their apps on its mobile operating  system iOS.