Apple to Start Manufacturing iPhones in India from April 2017
- Author: Latoya Cobb Jan 01, 2017,
Jan 01, 2017, 0:19
By setting up local manufacturing units in India, the prices of the iPhone could drop as the 12.5 percent additional duty on full imports can be avoided.
Apple CEO Tim Cook, during his visit to India earlier this year, had said the country was its next big market.
Aside from the reduced output, new information from industry sources claims that Apple is also manufacturing iPhones in India in 2017. "The Bangalore area is being looked at very seriously", said multiple sources within the company. Another supplier noted that a lack of the complete supply chain - which exists in China - would mean longer turnaround times to adapt to changes.
As the Indian government vigorously promotes India as an encouraging site of business development and manufacturing, Apple specifically has communicated a lot of enthusiasm considering India to be an extremely lucrative market for its portfolio.
Local manufacturing is expected to help Apple price its phones more competitively in India as it now attracts 12.5 per cent additional duty on imports. It will become the third contract manufacturer to build Apple smartphones after Foxconn and Pegatron.
An inter-ministerial meeting, scheduled for next month, will discuss and deliberate certain incentives sought by tech-giant Apple Inc to set up a manufacturing unit in the country.
Apple, presently, manufactures its products in six nations, including South Korea, Japan and United States.
However, manufacturing or a "true make in India" product would be possible only if the government creates conductive conditions here which would attract companies to setup manufacturing parts. This is year which could produce an iPhone that's quite a bit different from years past. Meanwhile, Apple declined to comment when asked about their proposed plans to establish a facility in India.
He also sees the potential for a higher dividend yield of 3.5% to 4% if Apple can bring home foreign profits under more favorable tax policies proposed by President-elect Donald Trump.