Apple in talks with Indian government to manufacture iPhones locally


Apple is currently in talks with India's government to begin manufacturing products locally, as the US tech giant aims to increase its market foothold in the world's third-biggest smartphone market.

According to two senior government officials speaking to the WSJ on condition of anonymity, Apple last month sent a letter to the Indian government, outlining its plans and seeking financial incentives which prompted a meeting between Trade Ministry authorities to discuss the matter.

India is currently the world's third-biggest smartphone market, behind China and the U.S., with Gartner projecting smartphone shipments in the country to reach 139 million this year. However, the vast majority of the devices sold in India will run Android and cost less than $150, according to Gartner. Currently, iPhones account for less than 5 percent of Indian smartphone sales.

Apple is already investing more and more in the South Asian market, but local manufacturing would be the next logical step to increase its presence in the blooming market. Local manufacturing would allow Apple to open its own retail stores in India, as foreign companies are required to locally source at least 30 percent of the materials used for their products. Furthermore, Foxconn, the Chinese manufacturer that makes various Apple devices such as iPhones and iPads, owns a manufacturing facility in Southern India.

Some foreign smartphone makers, such as Samsung and Xiaomi, are already manufacturing locally for the Indian market. Recently OnePlus also revealed plans to begin manufacturing future devices in India and open more services and a retail location.

PhoneArena is on Instagram. Follow us to stay updated with fresh news and flashy media from the world of mobile!

source: WSJ

FEATURED VIDEO

22 Comments

1. lyndon420

Posts: 6863; Member since: Jul 11, 2012

Good. And while they're at it they can talk it over with Trump about starting up in America.

20. ibend

Posts: 6747; Member since: Sep 30, 2014

yeah... goodbye "Made in China", and welcome "Made in India"... /s while Trump want all apple product to be "Made in USA", good luck for Tim, lol...

21. Chrusti

Posts: 103; Member since: Jul 25, 2015

whats next? iphones made in africa?

24. razmahtaz001

Posts: 501; Member since: May 11, 2013

how about iphones made in guatamala???

2. bucky

Posts: 3794; Member since: Sep 30, 2009

Apple does this and I'm done with them.

3. peegieislim

Posts: 68; Member since: Dec 14, 2016

Bye then

13. marorun

Posts: 5029; Member since: Mar 30, 2015

Why? i would love if all OEM would start having manufacture in each country they sell with a big enuf client base. At least do part of the manufacturing and packaging in home country where you sell. Make ppl work do your part!

22. Chrusti

Posts: 103; Member since: Jul 25, 2015

who knows its all about money

4. KingSam

Posts: 1492; Member since: Mar 13, 2016

The ones manufactured in India are probably for that region only. Wouldn't make sense to be distributing from there.

7. GreenMan

Posts: 2698; Member since: Nov 09, 2015

KingSam, I don't think a 5% market share in India is enough to justify the existence of a manufacturing facility there... And right now, its just "talks"... And talks are what they are; just "talks"...! But even if it happens, I'm sure these phones will be sold globally ala FoxConn... Oh well... G'Day!

14. marorun

Posts: 5029; Member since: Mar 30, 2015

GreenMan i recommend to double check India way of doing business. They put a BIG import tax on everything not made locally. This alone kill Apple momentum in thats market and thats what they want to fix by doing this.

5. GreenMan

Posts: 2698; Member since: Nov 09, 2015

I'm sure that Trump won't be happy about this... Nor do his patriotic loyal 'subjects' who just love to call themselves 'The Deplorables'... And... Even though I don't support Trump for the most part... He has my support when he talks about employment... I've always supported politicians who consider 'employment' a top priority in their agenda... The way I see it, employment must be the first and foremost priority to any government... And I expect Trump to halt these talks indefinitely... They way India is chugging its hard earned cash on its army, the increasingly border tension between Pakistan & India, and how its prominent figures are all about aggression and lack any sense of tolerance to neighboring countries is certainly alarming for the whole continent, if not the world... And needless to say; I find most Indians to be intolerant to foragers, specially those who belong to neighboring countries... I'm pointing at Pakistan & China here... Same goes to Bangladesh and Afghanistan, albeit to a lesser extent... There's just so much hate brawling in India, you've to see it to believe it... BBC can be a good source... Woah.. Almost forgot that this is a tech blog...! That's what happens when you get old, you just drift away in thought...! G'Day!

6. ThE_fLaSh

Posts: 26; Member since: Dec 10, 2016

you are joking right!!!? India have never created a war on this world!!! you should be ashamed!!

9. kumarabhishek591

Posts: 153; Member since: Feb 22, 2014

Dont believe everything a news channel tells you. :)

10. Mr.boss unregistered

Mr.GreenASSMan, I think you are talking from your lips in your ass. They are so much diversified and speaking 250+ more languages and still they r more peaceful than the rest of countries whos still fighting over black n white racisms. I found all of ur posts are just useless and u started getting embarrassing now! Pls go back to ur ass hole cave and live there!

11. aman5mathur

Posts: 242; Member since: Mar 28, 2014

Mr Green Man or whoever the hell you are First get your facts right Who has been entering our land and blasting out bombs, holding hostages, and conspiring to divide our country? Who just got in our territory and killed 18 of our unarmed soldiers? Who has been continuously sending troups of militants to kashmir? Who's making our fake currency and trying to nullify our economy? Get your answers and then come to argue And you were talking about our relationships right? What do you think our PM has been doing visiting each and every country on this planet, making enemies? Is that what you think? And specifically about Pakistan, i dony need to tell the world what is its state of economy, almost on the edge of bankruptcy and yes name any terrorist organisation, its there on that land So Mr Green Man talk to me when you start reading some real news And dare not speak again against my country If im being polite this time, its only so that you can see that we are patient people and treat others with due respect but that doesn't mean we will entertain any word spoken against our country I know i have done the same speaking against pakistan but only after acknowledging the fact that people there in that country have lost faith in their government (if there's any) I mean no disregard to the people of pakistan as i know they are ultimately my brothers (as i think of them) but im very clear about their government and the only point i want to make is for the green Man to shut up if he knows nothing about something that doesn't even concern him. G'Day to you as well Regards from India

8. cnour

Posts: 2305; Member since: Sep 11, 2014

Talk between two gouvernements. Apple becomes a gouvernement with its continuous innovations.

15. marorun

Posts: 5029; Member since: Mar 30, 2015

empty word from Apple troll..

12. jove39

Posts: 2148; Member since: Oct 18, 2011

It'd make sense if Apple see growth potential in Indian market. Or Apple might just allocate manufacturing of old devices (iPad Air, iPad mini 2, iPhone se, iPhone 6 etc. ) in regions like India and China. And make latest devices in US. US production of iDevices depends heavily on trumps promise for tax reduction from 35% to 15%.

16. marorun

Posts: 5029; Member since: Mar 30, 2015

Indian have heavy tax for import so its would make sense. its also the second most populated country so a big market for apple.

23. Tyrion_Lannister unregistered

India has almost 40% on CBU imports. Producing locally would make the products a lot cheaper in India and on par with Samsung phones in price, which will surely increase the sales. Not to mention the sheer population of the country with the fastest growing major economy in the world. No wonder apple is investing.

19. newbey123

Posts: 702; Member since: Mar 19, 2012

Smart move.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.