Apple Will Assemble iPhones In India for Indian Market
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Posted on 02/02/2017 10:48:15 PM PST by Jyotishi
Apple iPhones will be 'Made in India', and Bengaluru is where this will be taking place, according to the government
It is now official: Apple is taking the 'Make in India' route with its iPhones, and Bengaluru is where this will be taking place. The government of Karnataka issued a press release "welcoming the move'. Apple's proposal is to commence initial manufacturing operations in Karnataka.
The press statement reads, "Apple's representatives led by Ms. Priya Balasubramaniam, VP iPhone operations, Mr. Ali Khanafer (Head, Government Affairs), Mr.Dheeraj Chugh (Director, iphone operations) and Mr. Priyesh Povanna (Country Counsel) met with Ministers and officials of Government of Karnataka and had positive discussions about the initiatives in manufacturing and possible collaborations with state Government in other areas." So far Apple has yet to issue a comment on the same.
"Apple's intentions to manufacture in Bengaluru will foster cutting edge technology ecosystem and supply chain development in the state, which are critical for India to compete globally. The Government of Karnataka is committed to new initiatives in any sector for manufacturing and will provide a conducive environment for investment," adds the statement.
Apple's Make in India plans for iPhones has been reported by the media for some time now. Last year, when Apple CEO Tim Cook visited India, he had discussed the possibility of manufacturing with Prime Minister Narendra Modi, but no official confirmation was given.
Since then there have reports, including from The Indian Express, on how Apple has sought some major concessions before it starts manufacturing in the country. The Indian Express also reported how Apple in its meetings with Indian government officials indicated it wants to initially assemble the iPhone SE model in India. Apple making iPhones in India could mean lower prices for the future products, though don't expect the iPhone 8 to be #MadeinIndia anytime soon.
In January, Wistron Corp, one of Apple's manufacturing partners applied for permission to expand its plant in Bengaluru. The Taiwanese contract manufacturer also requested its application be fast-tracked, officials told Reuters. This was seen as a prelude to Apple making iPhones in India.
So what do we know about Apple's iPhone manufacturing plans in India so far? Here's a quick look.
Apple's list of demands for manufacturing
As The Indian Express reported, Apple wants a 15-year Customs duty holiday on "import of iPhone kits, new and used capital equipment, and consumables." This is in order to let the company establish an iPhone production facility in India, although it is not clear if Apple has been granted this by the government of India. It looks like the Apple iPhone manufacturing in India will be mostly around assembly of the iPhones, and the company intends to import "components,completely knocked down (CKD) and semi knocked down (SKD) units of iPhones." Apple wants duty cuts on these.
Commerce and Industry Minister Nirmala Sitharaman had said the government was yet to take a view on Apple's demands. "We are discussing that... no other mobile manufacturer has sought any extra concessions... we have not taken any decision," she said.
Later, it was reported that thanks to Apple's request the government is "considering continuing the duty-free regime on import of components used in mobile phones provided they are for 'higher technology' smartphones with a longer lifecycle and with the least hazardous substances."
Apple exclusive stores
Apple had earlier requested the government to exempt it from adhering to the domestic sourcing norm of 30 per cent, which is a condition for investments in single brand retail. This could allow Apple to open its own exclusive stores in India. Now, Apple-branded stores in India are run in partnership with other retailers.
As The Indian Express reported, this was approved by the Prime Minister's Office last June. Apple was then asked to send its consent to this proposal, but has not yet responded on the same. Apple CEO Tim Cook in the company's recent investor earnings call after Q1 results, confirmed they are "investing significantly" in India, and are in talks on a number of things including 'retail stores.'
No bad. Apple is facing fierce competition in China and Asia market.
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So Apple still wants to have the screens and chips manufactured in China, but move the components to India for assembly using cheaper labor.
In order to keep the cost savings, Apple wants to move the components into India duty free, in essence creating their own little private "NAFTA" agreement with India.
Move manufacturing to USA, not India.
This is a big step for India, that their infrastructure has improved to this point (while still being sufficiently labor-cost competitive).
Try and find a smart phone made in the USA...there are 2
http://usamadeproducts.biz/electronics-cell-phones.html
There should be 10% tariff on all consumer electronics entering the US market.
Will FoxConn move the suicide nets to India or will they spring for new ones?
Foxconn is building a $2 billion iPhone assembly plant in Pennsylvania. Apple already builds Apple iMacs in Elk Grove, California, and Apple Mac Pros in Austin, Texas. Is that close enough to the USA for you?
How many times do YOU have to be told that every single suicide that occurred during the spate of 18 suicides among Foxconn's 1,500,000 employees over an eighteen month period during 2010/2011 resulting in a 0.75 per 100,000 employees per year AT ITS WORST, occurred at plants making HP computers, Sony Playstations, Nokia cellular phones, and Microsoft Xboxes? How many times must you be told before you keep conflating a suicide rate that would be the envy of the world into some kind of SLAP AT Apple in every Apple thread?
Why don't you post your calumny in threads mentioning Microsoft, Sony, Nokia, or HP, where the actual events occurred? The closest plant making Apple products was over 150 miles away from any of these suicides.
The current number of suicides per year in ALL of Foxconn's plants in 2013 was ZERO. The number in 2014 among over 1.75 million workers was TWO. In 2015, again ONE. The number has yet to be released for 2016 and it had nothing to do with any nets, which were erected at a single plant in Szenchen. . .
No doubt you will post your lie, again, in the next Apple thread, even though YOU have been told the actual facts over and over, but facts won't penetrate your impervious skull.
India does not have the infrastructure to manufacture any chips.
Strange, they are not requiring Samsung to manufacture THEIR products in India. . . I wonder why not?
I support Build-It-Here-Sell-It-Here manufacturing. Apple is build a plant here in the US for US sales and they should build plants across the globe for sales on those countries.
I applaud Apple for making this decision.
Does “Bengaluru” happen to be Bangalore?
Thoughts?
Yes, Bengaluru is the official name.
So are München, Roma, and Bruxelles, but when we write in English, we say Munich, Rome, and Brussels.
“Bengaluru” is what the English-language news stories and government documents mostly use now. The same with “Mumbai”, “Kolkata”, “Chennai”, “Beijing”, “Myanmar”, “Yangon” and many other names around the world.
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