Apple to Start Manufacturing iPhones in India

By Ellen Fraser, | February 03, 2017

Apple

Apple

Apple Inc. will commence manufacturing of iPhone in India by the end of April, according to the press released signed by Karnataka state’s information technology minister Priyank Kharge.

India’s local IT minister issued a statement this week, welcoming the proposal of Apple to assemble iPhone hardware in Bengaluru, Karnataka. Priyank Kharge said that the Cupertino-based tech giant has tapped Taiwan’s Wistron Corp. to manufacture its phones in the tech capital Karnataka. 

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He had a meeting with Apple executives in January and confirmed the timeline of the plan. Included in the meeting were VP of iPhone operations Priya Balasubramaniam, Senior Manager Government Affairs for the Middle East and India Ali Khanafer, director of iPhone operations Dheeraj Chugh and country counsel Priyesh Povanna.

“Apple’s intentions to manufacture in Bengaluru will foster cutting edge technology ecosystem and supply chain development in the state, which is critical for India to compete globally. The Government of Karnataka is committed to new initiatives in any sector for manufacturing and will provide a conducive environment for investment,” said Priyank Kharge in a statement.

Apple has negotiated with India’s federal government with some list of demands including a 15-year tax holiday to import components and equipment. The company will only do manufacturing operations in the country. Although the timeline is not yet clear, the production is expected to begin in April. The government said that there are productive discussions with Apple for other potential collaborations, but did not elaborate on the matter.

The proposal of the iPhone maker to open a factory in Bengaluru suggests that the company has renewed its focus on the country. The proposal will also cultivate cutting-edge technology ecosystem and supply chain development in the country. 

On the recent earning calls of Apple, CEO Tim Cook reiterated that India was the "place to be," becoming the most important markets for the company. This is a major step for Apple as it plans to solidify its presence in the subcontinent, accessing India's customer base.

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