Taiwanese Smartphone manufacturer Wistron (Apple’s partner) is setting up an iPhone assembly facility in Peenya, an industrial centre in the city of Bengaluru. As per the Times of India reports, the plant is expected to start in April 2017.
A PLANT IN INDIA
Apple has reportedly been discussing the plausibility of making the iPhones in the country, with the government in an aim to make inroads in the South Asian market.
Earlier this year, Apple CEO Tim Cook signalled PM Narendra Modi about his desire to start manufacturing unit in India on his multi-city India tour.
Apple admits the fact that, India plays a prominent role in the marketing of the company. Apple will get a lot of benefits by setting up a manufacturing unit in the country. The most prominent benefit among this will come in the form of tax relaxations.
BUT, WHY INDIA?
As per the Hong Kong-based Counterpoint Technology Market Research data, Apple sold 2.5 million iPhones in India from October 2015 to September 2016.
Local manufacturing makes Apple lower the prices of iPhones, as imported products have 12.5 per cent duty on it. You may see that cost of iPhone in India is the highest in comparison to other major countries.
INDIA GROWING DIGITALLY
In 2017, India becomes second biggest smartphone market after China. Consequently, the US will go to the third spot in accordance with International Data Corporation (IDC) reports. So this will definitely boost the sales of Apple’s devices. In particular, iPhones that haven’t made much impact on the smartphone industry in India will see a phase shift.
As a matter of fact, India’s Department of Industrial Policy and Promotion (DIPP) has sent Apple’s waiver request to the Department of Electronics & Information Technology and Department of Revenue for further discussions.
In fact, Apple has even published job openings on its portal for few positions. However, there is a condition that candidates should possess manufacturing experience.