Apple Inc has been in talks with the Indian Government throughout 2016, and looks like CEO Tim Cook’s numerous visits to the country are finally paying off. Reports now suggest that Apple will start manufacturing the iPhone in India, starting 2017. Wistron, a Taiwanese OEM for Apple, is known to be setting up a manufacturing facility in Peenya, Bengaluru, the Industrial centre of the city. According to ToI sources, the facility will start assembling iPhones starting next year, 2017.
Further, sources also informed the publication that Apple is “very serious” about starting assembly operations in India initially, which will be followed by full scale manufacturing of the device in the near future.
Apple has also sought to know the kind of incentives it can get for locally manufacturing iPhones in India. Said benefits could include tax rebates, given that Apple is looking to produce quality devices, with cutting-edge technology, a pre-requirement for getting incentives under the Make In India initiative. An interministerial group will also be looking into Apple’s query on incentives as early as next week. Officials from multiple ministries including, finance, industry, electronics and information technology, commerce and environment are expected to chair this high-level meeting.
Apple is also looking to set up its own retail stores in the country. Currently, the company sells its devices through resellers. Given that India is a strong market for Apple, with iPhone sales ballooning 50% from October 2016 to November 2016, Apple’s move to start local assembly and retail is expected to bring down the price of the device in India. Currently an import duty of 12.5% is charged on iPhones, which makes up for a significant increase in the original price of the devices.
Although there has been no official word from Apple, all reports seem to be strongly indicating towards an Apple India manufacturing venture. Earlier in the year, Apple also set up an app design facility in Bengaluru, for developing apps for iOS devices like, iPads, iPhones and Apple Watches. We reached out to Apple for an official word, howerever, the company declined to comment on the same.