Apple is planning to make Apple iPhone units with Bengaluru getting the chance to manufacture Apple’s iPhone units for the Indian market. As per a report from Times of India, Apple along with its Taiwanese OEM maker is setting up a plant in Peenya to assemble iPhone units. Peenya which is the industrial pivot of the state will manufacture iPhones for the Cupertino giant. As the industry source claims, the plant will start production from April next year.
The report also says that Apple is “very serious” in initializing assembly operations, heading on to full manufacturing process thereafter in India by the end of next year.
As PM Narendra Modi expressed the need of setting local manufacturing, the tech-company’s CEO, Tim Cook also agreed India to be the next big market to surge the growth of the company. However, as India doesn’t have a robust supply chain like China, this might cause an impediment in accumulating some raw materials locally.
But obstacles set apart, local manufacturing will make Apple products cheaper as imported goods have a 12.5 per cent additional duty to it. As the company’s Indian segment earned a high-end sale of up to 56 per cent in 2016’s financial year, with a net profit scaling up to 21 percent, this initiative would be a tough challenge for its competitors, Samsung to be in the top list, as the South Korean tech company manufactures its products prioritizing the consumers in emerging markets like India.
A recent report in Economic Times had cited Apple’s request for labelling laws relaxation for its products to avoid cluttering the design language. The company had also asked for tax incentives which are being reviewed by the finance ministry. Last year in July, 2015 government turned down the proposal of setting up wholly owned outlets in the country. Apple.Inc had sought exemption based on the grounds that it was bringing “state-of-art” and “cutting-edge-technology” making it difficult to meet the resources.