There were rumours earlier that Apple might soon start manufacturing their devices here in India, but, reportedly, the plan was later scrapped. The news is making rounds once again that Apple is once again willing to begin the manufacturing of their smartphones and tablets in India.
As reported by the Wall Street Journal, Apple had sent a letter to the Government of India in November detailing about their plan to set up a manufacturing unit in the country. The details have been provided to WSJ by two government officials on the condition of anonymity. They said that Apple wants to emulate its China model in India and for that, the company is seeking financial incentives from the government.
Besides lower manufacturing cost, Apple will also be benefitted in the process of opening Apple Stores in India. For FDI in single-brand retail, a company is required to source at least 30 percent of its materials from local vendors. Apple can bypass this norm by assembling the iPhones and iPads in India itself and would be able to open Apple Stores sooner in the country.
India is a pretty big market for Apple and the company sees a lot of business potential in the country for the next decade. Tim Cook confirmed that the country saw a jump of 50 percent in iPhone sales when the sales and Apple’s revenue were declining in other countries.
Tim Cook visited India earlier this year and made a few big announcements. Technology Development Center was opened by Apple in Hyderabad to focus on the development of Apple Maps. iOS app design and development accelerator was also announced which will come up in Bengaluru in 2017. Indian PM, Narendra Modi, also met Tim Cook while on his visit to the United States to discuss the business prospects in the country.