Apple has started assembling its first batch of phones in India. Firstly, Apple has started assembling with its cheapest handset, the iPhone SE. Apple takes a long time to bring this operation into the Indian market. Today Apple has confirmed that Production in India has finally begun and soon the handsets will be shipped to the consumers in this month of May, reported by The Wall Street Journal. The assembling was done at Taiwanese Contractor Wistron’s Karnataka unit in Bengaluru.

As the growth of iPhone Business slowing down, Apple is trying to flourish its market growth in India via assembling locally. But Apple has to face a number of challenges in India where the population is 1.3 billion. Apple needs to fulfil the Indian Law requirement that single brand retailer will acquire 30 percent of its parts locally, and then they will need to minimize their device prices. Prime Minister Narendra Modi has been emphasizing for more local manufacturing jobs under his “Make in India” initiative.

According to the Wall Street Journal the Indian Government is hoping that Apple should eventually reduce its iPhone SE price by $100 (Rs.6800). iPhone SE was launched in March in India and at that time was Rs. 39,000, and now iPhone SE is selling in the Indian market at Rs. 25,000. Still this handset lies in the mid-range segment of the Indian market market.

Apple is well known for not reducing much its profit margins. However, now Apple is manufacturing in India, so the cost of tax duties and other legal formalities will be reduced that will give Apple a great chance to price its iPhones more competitively.