With an aim to penetrate into the South Asian market, Apple reportedly is discussing the plausibility of making the iPhones and iPads in India with the central government.
With an aim to penetrate into the South Asian market, Apple reportedly is discussing the plausibility of making the iPhones and iPads in India with the central government. The Wall Street Journal reported that according to two senior government officials this plan may soon be successful. Even though Apple CEO Tim Cook had earlier informed that the company does not plan to set up factories in India, but the government had said that there were discussions with PM Narendra Modi. According to a PTI report, recently there was a meeting between officials from Apple and Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek where matters of Foreign Direct Investment were discussed. The Wall Street Journal said that sources have informed that there was a letter given by Apple to the Indian government and later senior trade ministry authorities had a meeting with the company officials. WSJ quoted a government official as saying, that Apple wants financial incentives to manufacture products in the country
However, Apple has not spoken anything about this yet. It is likely that Apple might open its stores in the country after it starts making its products here. According to a report by IDC, India in 2017 will become the second biggest smartphone market after China, and the US will go to the third spot. This will give a big boost in the sales of its devices, especially iPhones which still have not made much of a mark in a big smartphone market like India. The company had also in January reportedly sought permission from the government to open its stores. In June, PM Modi-led government eased the FDI restrictions in many sectors, where according to WSJ, it said that single brand retailers like Apple are allowed to open stores but they have to purchase a minimum of 30 percent of manufacturing materials from vendors in India after a period of three years which can be difficult of Apple as there are not many manufacturers in India.
Tim Cook considers India a big market and visited India in May 2016 when he met PM Narendra Modi, and other celebrities. Cook had said that there was a rise in revenues in India. The Cupertino giant currently sells its devices through Indian distribution companies and retailers, WSJ said. The assembling of these devices is done mainly by Foxconn Tech Group in China. However, other big rivals like Samsung and even China’s Xiaomi have been assembling in India for some time.