They will start assembling its lower priced iPhone SE models at a contract manufacturer's plant. "Although no final decision has been taken yet and the proposal has to be finally approved by the Prime Minister's Office but a few states are ready to welcome them," sources from the Ministry said.
United States based iPhone maker Apple’s proposal is lying with the commerce and industry ministry presently and it is viewing the proposal ‘favourably’. However, no decision has been announced yet. Apple Inc is eyeing India’s IT hub Bengaluru to open its manufacturing unit. Apple requested concessions, including custom duty waiver on import of components. The company is ready with the blueprint to begin the manufacturing, it said. Apple’s sales have been tapering in US and China lately and India is its next market. The local manufacturing in India will also cut many costs. It does not make its own devices and does it through contract manufacturers. Some agencies reported that the manufacturing is not contigent on these concessions.
Besides, a 15 year exemption on custom duty on imports of components, Apple wants 30 per cent relaxation in the mandated local sourcing components. Duty and tax related concessions will be looked into by the respective department in the ministry, most of them are in the policy domain, PTI reported.
Apple ranks 10th in India in the smartphone market after Samsung and other Chinese players, as the other smartphones are available under Rs 15, 000 range as well. Apple Iphone SE models cost in Amazon India start from Rs 28, 433.
Apple sells its devices from its own retailer in China, US, Germany, UK and France. It sells its products in India through distributors like Redington and Ingram Micro, as they don’t own any store wholly here.
Maybe the government will see this opportunity as a way of employment generation in the country. As India is one of the largest smartphone market today, Apple is seeking to lower its cost and produce in India for higher sales where many chinese companies dominate.