Apple will Start manufacturing Made In India Smartphone(iPhones) in Bengaluru in 2017.
Apple Choose Bengaluru because this city has high global startup economy growth index.
Apple has long been rumored to be planning on manufacturing its products in India. In line with various rumors is a new report, which claims that Apple supplier Winstron is in the process of setting up an assembly facility in Bengaluru. Production at this facility is slated to start as early as April 2017.
Taiwanese OEM Winstron is setting up a facility at Peenya, an industrial hub in Bengaluru. Though this plant will initially be used for assembling iPhones, the ToI report claims that Apple is serious about starting iPhone manufacturing in the country before the ‘end of 2017’. The report adds that Apple supplier Foxconn was initially committed to setting up a manufacturing facility in Maharashtra. But the contract manufacturer is also in a partnership with other companies like Xiaomi and OnePlus, and this facility wouldn’t be exclusive to Apple.
By locally manufacturing its products, Apple will be able to price them more aggressively as it will be exempt from the 12.5 percent additional duty. This is also the second time Apple is looking towards Bengaluru, after having announced an iOS app design and development accelerator, which will come up sometime next year.
Besides being able to aggressively price its products, manufacturing in India will also help Apple in its quest to set up its Stores in the country. Currently, one of the things stopping Apple Stores from coming to India is the local sourcing norm, which entails that Apple will have to purchase a minimum of 30 percent of manufacturing materials from local vendors after a period of three years. This is proving to be difficult since India doesn’t really have companies manufacturing parts that live up to Apple’s standards. By manufacturing its products locally, Apple will be able to bypass the local sourcing norms, and open its stores in India.
The report reiterates how Apple is ‘very serious’ about the Indian market. This is anything but surprising, when you consider how iPhone sales in the country continue to grow amidst a decline globally. In the recent quarter, CEO Tim Cook mentioned how iPhone sales in India went up by more than 50 percent in fiscal year ending September 2016, compared to the same period last year
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