Apple to make iPhones in India this year

The government of the Indian state of Karnataka said on February 2 it welcomed a proposal from Apple Inc to begin initial manufacturing operations in the state, in a sign the tech company is slowly moving forward with plans to assemble iPhones in the country.

"We have an understanding with Apple and we expect them to start manufacturing in Karnataka by the end of April", state minister of information technology and biotechnology Priyank Kharge told AFP. Apple executives met with him in January and confirmed the timeline, he said in an interview.

Any final decision about manufacturing in India, however, is likely to still be contingent on the government's willingness to concede ground on the concessions sought by the company.

"Apple's iPhones will be made in Bangalore and all devices will be targeted at the domestic market", said Kharge, IT minister for Karnataka, of which Bangalore is the capital. Apple's manufacturing product in Bangalore should pave its entry into direct retail in India. "We did not discuss any other incentives", he said.

Immediately, there were comments in the social media saying that what all KTR got was just Baigan (a word which is commonly used in Hyderabad to describe a project failure), while the real Apple went to Bengaluru!

The US giant has not confirmed the move, but chief executive Tim Cook said this week the company meant to "invest significantly" in India, where a pick-up in the economy provides ample opportunity for growth.




Under current laws, any Apple store that would open in India would have to contain at least 30% locally-manufactured products.

Making iPhones locally could also score brownie points with the national government.

New Delhi has since relaxed the rules, giving companies up to eight years to meet the sourcing requirements, as part of a push to attract foreign investment and create jobs.

Smartphone shipments in India grew 18% previous year, compared with just 3% globally, according to Counterpoint Research. Though earning the top spot in premium phones sales in 2016, iPhone only places 10 overall among all phones sold there, bowing down to Chinese brands.

Apple iPhone to start production in India, in the month of April or May 2017:- On Friday, from a source that an assembly plant that Apple's Taiwanese manufacturing partner Wistron Corp is setting up in Bengaluru will focus exclusively on assembling iPhones.

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