Apple&nbsp;Inc's cheapest handset will support 5G technology in its next iteration and its iPhone Mini will not be included in its 2022 lineup, Nikkei reported&nbsp;on Wednesday, citing sources familiar with the matter.

The company will start selling a 5G version of budget iPhone SE in the first half of 2022, Nikkei reported, adding the device will be powered by its A15 processor and its 5G connectivity will be enabled by Qualcomm Inc's X60 modem chip.

Telecom operators have been spending billions of dollars to upgrade their networks to the much-touted 5G to enable faster internet and better coverage.

However, analysts are skeptical of the uses of the technology to individual consumers and believe there are years to come before one can reap the actual benefits.

Meanwhile, demand for iPhone Mini, the smaller version of&nbsp;Apple's flagship device has been muted, compared with its bigger and high-end models like iPhone 12 Pros and the older iPhone 11s as users prefer larger devices to run almost every day-to-day tasks.

US&nbsp;sales of iPhone 12 Mini were just 5 per cent&nbsp;of overall sales of its new phones during the first half of January, according to industry data provider Counterpoint.

Apple&nbsp;did not immediately respond to Reuters request for comment.

Apple Inc's cheapest handset will support 5G technology in its next iteration and its iPhone Mini will not be included in its 2022 lineup, Nikkei reported on Wednesday, citing sources familiar with the matter.

Apple Inc's cheapest handset will support 5G technology in its next iteration and its iPhone Mini will not be included in its 2022 lineup, Nikkei reported on Wednesday, citing sources familiar with the matter. The company will start selling a 5G version of budget iPhone SE in the first half of 2022, Nikkei reported, adding the device will be powered by its A15 processor and its 5G connectivity will be enabled by Qualcomm Inc's X60 modem chip. Telecom operators have been spending billions of dollars to upgrade their networks to the much-touted 5G to enable faster internet and better coverage. However, analysts are skeptical of the uses of the technology to individual consumers and believe there are years to come before one can reap the actual benefits. Meanwhile, demand for iPhone Mini, the smaller version of Apple's flagship device has been muted, compared with its bigger and high-end models like iPhone 12 Pros and the older iPhone 11s as users prefer larger devices to run almost every day-to-day tasks. US sales of iPhone 12 Mini were just 5 per cent of overall sales of its new phones during the first half of January, according to industry data provider Counterpoint. Apple did not immediately respond to Reuters request for comment.

Apple to upgrade budget handset to 5G, drop iPhone Mini from 2022 lineup

&nbsp;Apple has asked the Indian government to extend tax breaks to its suppliers if India seeks to become a manufacturing hub for iPhones and its components.

Government officials say meeting this request would require a new policy that applies fairly to other device makers, too.

The US&nbsp;tech giant has been in talks with Indian officials since May of last year when CEO Tim Cook and Prime Minister Narendra Modi agreed to set up a production base in the country that goes beyond just assembling the devices, as happens today.

The two sides have been discussing a list of &quot;prerequisites&quot; that Apple submitted in October, including duty exemption on raw materials for manufacturing components and capital equipment for 15 years for it to make iPhones from scratch in India.

The company has told the government it would be bringing in a host of these ancillary units when it sets up operations to cater to India, one of the world&#39;s fastest growing smartphone markets, a top government official said.

&quot;They want the same treatment to be given to the component manufacturers; the tax concessions, they want everything. But then some kind of policy will have to be evolved,&quot; the official said.

Apple declined to comment.

The demand could further delay Apple&#39;s plans to penetrate the Indian market, the world&#39;s third largest for smartphones behind the United States and China, but where it has only a 2 per cent share.

The company is looking to India after sales in the Greater China region, once a major growth driver, slid 14 per cent year-on-year to $10.7 billion in the three months ended April 1.

In May, Apple, working with Taiwanese contract manufacturer Winstron, began assembling the iPhone SE in Bengaluru.

The plan that Modi and Cook ordered the two sides to work on, however, envisages manufacturing a full range of iPhones for the domestic market, as well as for export.

Ecosystem for Handsets

For India, which would only be the second iPhone production centre after China, such an investment would be a big win for Modi&#39;s Make-in-India campaign.

It would also spawn a vast network of suppliers, in the way that India&#39;s auto ancillary sector took off to feed Maruti Suzuki India&#39;s production line over three decades ago.

Another official, who has led efforts to secure foreign investment in the manufacturing sector, said Apple&#39;s proposal to build its phones in India was being examined favourably by the government.

&quot;My view is that India needs to support Apple to create an ecosystem, which was done for Maruti. This helped to build the automobile and auto component industry in India,&quot; the official said, seeking anonymity in line with government policy.

&quot;Initial support will pay rich dividends in the long run and facilitate innovation, design, and manufacturing of electronics components in India,&quot; the official added.

Apple competitors such as South Korea&#39;s Samsung Electronics and China&#39;s Oppo could also benefit from a broader policy review as they, too, currently have predominantly assembly operations in India.

Another government official familiar with the matter said it would be difficult for India to agree to Apple&#39;s request for a customs holiday for just its own operations in India.

Customs duties have already been slashed in order to make India a hub for handset assembly lines, the official said.

That move has encouraged phone makers to set up such facilities in India, and so the duty structure cannot be changed for one company, the official said.

The US?tech giant has been in talks with Indian officials since May of last year when CEO Tim Cook and Prime Minister Narendra Modi agreed to set up a production base in the country

Apple has asked the Indian government to extend tax breaks to its suppliers if India seeks to become a manufacturing hub for iPhones and its components. Government officials say meeting this request would require a new policy that applies fairly to other device makers, too. The US tech giant has been in talks with Indian officials since May of last year when CEO Tim Cook and Prime Minister Narendra Modi agreed to set up a production base in the country that goes beyond just assembling the devices, as happens today. The two sides have been discussing a list of "prerequisites" that Apple submitted in October, including duty exemption on raw materials for manufacturing components and capital equipment for 15 years for it to make iPhones from scratch in India. The company has told the government it would be bringing in a host of these ancillary units when it sets up operations to cater to India, one of the world's fastest growing smartphone markets, a top government official said. "They want the same treatment to be given to the component manufacturers; the tax concessions, they want everything. But then some kind of policy will have to be evolved," the official said. Apple declined to comment. The demand could further delay Apple's plans to penetrate the Indian market, the world's third largest for smartphones behind the United States and China, but where it has only a 2 per cent share. The company is looking to India after sales in the Greater China region, once a major growth driver, slid 14 per cent year-on-year to $10.7 billion in the three months ended April 1. In May, Apple, working with Taiwanese contract manufacturer Winstron, began assembling the iPhone SE in Bengaluru. The plan that Modi and Cook ordered the two sides to work on, however, envisages manufacturing a full range of iPhones for the domestic market, as well as for export. Ecosystem for Handsets For India, which would only be the second iPhone production centre after China, such an investment would be a big win for Modi's Make-in-India campaign. It would also spawn a vast network of suppliers, in the way that India's auto ancillary sector took off to feed Maruti Suzuki India's production line over three decades ago. Another official, who has led efforts to secure foreign investment in the manufacturing sector, said Apple's proposal to build its phones in India was being examined favourably by the government. "My view is that India needs to support Apple to create an ecosystem, which was done for Maruti. This helped to build the automobile and auto component industry in India," the official said, seeking anonymity in line with government policy. "Initial support will pay rich dividends in the long run and facilitate innovation, design, and manufacturing of electronics components in India," the official added. Apple competitors such as South Korea's Samsung Electronics and China's Oppo could also benefit from a broader policy review as they, too, currently have predominantly assembly operations in India. Another government official familiar with the matter said it would be difficult for India to agree to Apple's request for a customs holiday for just its own operations in India. Customs duties have already been slashed in order to make India a hub for handset assembly lines, the official said. That move has encouraged phone makers to set up such facilities in India, and so the duty structure cannot be changed for one company, the official said.

Apple seeks tax breaks for suppliers to make iPhones in India: Report

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Apple to upgrade budget handset to 5G, drop iPhone Mini from 2022 lineup

Apple seeks tax breaks for suppliers to make iPhones in India: Report