Apple is reportedly all set to invest $1 billion to expand the local production of iPhones in India. The move comes as the firm plans to begin the export of ‘Made in India’ iPhones across the world. The details arrive amidst the ongoing trade war between China & the US. Additionally, strong local manufacturing will help Apple avoid 20% duty.
According to reports by TOI, “Apple will be investing $1 billion in India through its partners. They have said the production will be used for meeting the demand for its products across global markets.
The tech giant will be collaborating with Taiwanese contract manufacturing partner Foxconn. Apple plans to use Foxconn’s factory in Chennai as the manufacturing unit for its production. Another one of Apple’s component suppliers will be investing in the venture.
Apple had initially started limited local production of some particular models in India through the Bangalore factory of Wistron of Taiwan, another manufacturing partner. Foxconn has undertaken fresh expansion.
Sources have stated that “testing is underway” for the manufactured products of India and further said that “Apple is also seeking clarity” on the export incentives offered by the government currently. However, Apple has not commented on the statement officially.
Supporting the ‘Make in India’ movement
The government of India has been promoting its campaign of ‘Make in India’ to encourage firms to manufacture their products in India. Ravi Shankar Prasad, the IT & Electronics minister, said that the government has also been urging the iPhone maker to expand its manufacturing base in the country and utilize it as an export hub. After attending the meeting with the US-giant, he stated that Apple has started manufacturing iPhones in India, which will be making components and will be exporting as well. He added, “Apple is on board as far as India’s success story is concerned.”
The expansion of the local manufacturing unit in India will help the firm to gain market share in the premium segment. The production will help Apple to price iPhones aggressively to take over Oneplus and Samsung’s flagship smartphones. The local growing output might help Apple to meet the 30% local sourcing norms required to open retail stores in India. The Steve Jobs-founded company is reportedly planning to open three brick-and-mortar stores in India & establish online sales.