14 DAY TRIAL // Last month, we reported that Apple chose Taiwanese ODM Wistron to start assembling iPhones in India and, recently, the information was confirmed by the IT Minister of the Indian State of Karnataka, Priyank Kharge.
Priyank Kharge has revealed in an interview with Bloomberg that manufacturing will begin in India’s Bangalore city by the end of April. This means that the upcoming iPhone 8, set to be released later this year, could be assembled there.
Later, Priyank Kharge took to Twitter to say that “Apple’s iPhones will be made in Bangalore and all devices will be targeted at the domestic market.” He added that the state of Karnataka would assist Apple if it intends to contract other manufacturers in the region.
Apple is requesting tax breaks in India
Apple has been in talks with the Indian government for quite a few months now. The company has allegedly requested a 15-year tax break, but this is still under negotiation. The Cupertino company is said to have put together a longer list of demands and negotiations, but it wasn’t disclosed. If Apple receives certain tax advantages in the country, it would prompt other manufacturers to demand the same exemptions before building new plants there.
With this new manufacturing plant, Apple will now be able to open direct retail stores in the country and expand its presence, as well as market share in India. In 2016, Apple managed to ship 2.5 million iPhones in India, ranking 10th in a market dominated by Samsung and smartphones running Android mobile OS. Recent reports show that an estimated 750 million smartphones could be sold by 2020, while Apple only accounts for 2% of shipments in India.
Tim Cook has recently said during the post-earnings call that Apple is currently “in discussions on a number of things, including retail stores, and fully intend to invest significantly in the country.” In addition, he believes that a plant in India is “a great move.”