Tim-Cook-IndiaApple is seeking financial incentives within India to make it easier to build a new manufacturing plant within the country (via The Economic Times).

The company has asked for incentives specifically from the Department of Revenue and the Department of Electronics and Information Technology in India as a way to offset the high cost of building an entirely new iPhone manufacturing unit in the country.

Throughout the year, Apple struggled with India's local sourcing laws, which requires 30 percent of goods sold by a foreign company to be manufactured or produced within India, a law which also hampered Apple's retail expansion because it creates most of its products in China. Over the summer, Indian Prime Minister Narendra Modi made it easier for Apple to expand its retail stores in the country by approving a three-year extension on the local sourcing laws because of its single-brand company status selling "cutting-edge technology."

These various extensions will only last for a few years, however, so Apple's seeking of financial incentives for its new manufacturing plant proves its long-term goal to have a consistent presence within India.

"They are doing their due diligence from quite some time. The Department of Industrial Policy and Promotion (DIPP) will write to both the departments regarding this communication for their views," the official added.

At present, to boost electronic manufacturing in the country, the government provides benefits under Modified Special Incentive Package Scheme (MSIPS). The scheme provides financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in Special Economic Zones, among other benefits.

In the spring, Apple CEO Tim Cook visited India to discuss manufacturing and retail opportunities with PM Modi. In terms of retail sales, Apple's Authorized Mobility Resellers program has allowed Apple to skirt the country's restrictive retail presence rules, but still lacks the ability to bring in big sales numbers from India.

In the midst of Apple's struggle to expand in India, a report from Strategy Analytics in August described a drastic percentage dip in iPhone users from 2015 to 2016, with 35 percent fewer iPhone devices sold this year. One reason for its deflating sales in the country, according to Tim Cook, could be the fact that iPhones are too expensive in the country, priced around 31 percent higher than they are in the U.S.

Tag: India

Top Rated Comments

69Mustang Avatar
117 months ago
Hah, Apple, the company that's sitting on $200+ BILLION, is asking a poor country for financial incentives, where the vast majority of people live in poverty, so they can build a factory and exploit those people to make iPhones that they won't be able to afford anyway.

That's just gold...

Timmy, give your head a shake... Build a factory if you want, you have the money to do it.
Apple is not asking for incentives, they are looking to avail themselves of the incentives India offers companies for building manufacturing plants in the country. It's right there in the article. These are the same incentives India offers other companies for building plants in the country.

It's not like Apple is going in and saying "gimme ABC and XYZ incentives and we will build a manufacturing plant in your country". To be honest, it's not like they could if they wanted to do so. In India, Apple isn't in a position to dictate terms. India doesn't need Apple. Apple technically doesn't need India either. But make no mistake, Apple desperately wants India.
Score: 6 Votes (Like | Disagree)
HiVolt Avatar
117 months ago
Hah, Apple, the company that's sitting on $200+ BILLION, is asking a poor country for financial incentives, where the vast majority of people live in poverty, so they can build a factory and exploit those people to make iPhones that they won't be able to afford anyway.

That's just gold...

Timmy, give your head a shake... Build a factory if you want, you have the money to do it.
Score: 5 Votes (Like | Disagree)
CB1234 Avatar
117 months ago
Apple is not asking for incentives, they are looking to avail themselves of the incentives India offers companies for building manufacturing plants in the country. It's right there in the article. These are the same incentives India offers other companies for building plants in the country.

It's not like Apple is going in and saying "gimme ABC and XYZ incentives and we will build a manufacturing plant in your country". To be honest, it's not like they could if they wanted to do so. In India, Apple isn't in a position to dictate terms. India doesn't need Apple. Apple technically doesn't need India either. But make no mistake, Apple desperately wants India.
Once again my friend, you are a voice of sense and logic amongst a lot of vitriol floating around here....

A lot of people think India is going to Apple with a begging bowl. That's totally not the case. It is more of Apple making the right noises to gain access to the Indian market..

A lot of people complaining about Apple and how it wants to exploit poor labour, are in fact insulting intelligence of hundreds of millions of Indians. Indians are quite business savvy and can hold their own when it comes to negotiating with multinationals. Some of the people posting on here & trying to protect the 'poor indians' should sometimes visit India and understand what the country is all about...
Score: 4 Votes (Like | Disagree)
69Mustang Avatar
117 months ago
I wonder how that Mac Pro factory in the US is doing.
Pictured: Mac Pro factory workers at busy hour.
Score: 3 Votes (Like | Disagree)
NT1440 Avatar
117 months ago
And the next stage of multinational globalism begins. India will soon be what China was 10 years ago, as the Chinese workers start to demand higher wages as the country continues to ascend financially.

What does it say when like clockwork, and all predictions, the assembly firms of the world continue to chase down labor markets that will accept a pittance for wages. Can we admit that without labor controls domestically (regardless of nation) your country's labor force is vulnerable (and therefore more willing to give in concessions while corporate profits are historically high) to outsourcing?
Score: 2 Votes (Like | Disagree)
thisisnotmyname Avatar
117 months ago
Economics are not a zero sum game. When manufacturing jobs went to China the USA did not become China economically, other sectors continued to expand and our country continues to have a very high standard of living on a global scale. China has already seen a great deal of flight as well, to Malaysia, then Viet Nam; there's great interest (particularly by the Chinese somewhat ironically) in sub-Saharan Africa now. This movement from China to other labor markets has been going on for over a decade and (despite some turmoil lately with many other causes) you didn't see China collapse - to the contrary they continued to grow greatly (possibly into a bit of a bubble which is now correcting). Chasing labor markets doesn't have to detract from the prior manufacturing centers, instead it can be a kickstart to building critical momentum in these developing nations that then allows them to maintain a higher standard of living across the board when the next market becomes the hot zone.
Score: 2 Votes (Like | Disagree)

Popular Stories

M5 MacBook Pro

Apple Announces New 14-Inch MacBook Pro With M5 Chip

Wednesday October 15, 2025 6:07 am PDT by
Apple today updated the 14-inch MacBook Pro base model with its new M5 chip, which is also available in updated iPad Pro and Vision Pro models. In addition, the base 14-inch MacBook Pro can now be configured with up to 4TB of storage on Apple's online store, whereas the previous model maxed out at 2TB. However, the maximum amount of unified RAM available for this model remains 32GB. Like...
Apple iPad Pro hero M5

Apple Debuts New iPad Pro With M5 Chip, Faster Charging, and More

Wednesday October 15, 2025 6:16 am PDT by
Apple today announced the next-generation iPad Pro, featuring the custom-designed M5, C1X, and N1 chips. The M5 chip has up to a 10-core CPU, with four performance cores and six efficiency cores. It features a next-generation GPU with Neural Accelerator in each core, allowing the new iPad Pro to deliver up to 3.5x the AI performance than the previous model, and a third-generation ray-tracing ...
apple oct 2024 mac tease

Apple Expected to Announce These Two to Three Products 'This Week'

Sunday October 12, 2025 7:05 am PDT by
Apple plans to announce new products "this week," according to Bloomberg's Mark Gurman. Apple's "Mac Your Calendars" teaser last October In his Power On newsletter today, Gurman said the products set to be updated this week include the iPad Pro, Vision Pro, and "likely" the base 14-inch MacBook Pro, with all three likely to receive a spec bump with Apple's next-generation M5 chip. Gurman...
maxresdefault

Here's Everything Apple Announced Today

Wednesday October 15, 2025 3:54 pm PDT by
We didn't get a second fall event this year, but Apple did unveil updated products with a series of press releases that went out today. The M5 chip made an appearance in new MacBook Pro, Vision Pro, and iPad Pro models. Subscribe to the MacRumors YouTube channel for more videos. We've rounded up our coverage and highlighted the main feature changes for each device below. MacBook Pro M5...
joz macbook tease

Apple Teases Upcoming M5 MacBook Pro Launch: 'Something Powerful is Coming'

Tuesday October 14, 2025 11:59 am PDT by
Apple marketing chief Greg Joswiak today teased the launch of an upcoming product, saying "something powerful is coming" on social media. Subscribe to the MacRumors YouTube channel for more videos. A short animation accompanying Joswiak's teaser reveals a brief glimpse of a MacBook Pro along with the words "coming soon." The shape of the MacBook Pro is a V, which is the Roman numeral...
airpods max 2024 colors

AirPods Max 2: Everything We Know So Far

Tuesday October 14, 2025 8:43 am PDT by
Apple's AirPods Max have now been available for almost five years, so what do we know about the second-generation version? According to Apple supply chain analyst Ming-Chi Kuo, the new AirPods Max will be lighter than the current ones, but exactly how much is as yet known. The current AirPods Max weigh 0.85 pounds (386.2 grams), excluding the charging case, making it one of the heavier...
HomePod mini and Apple TV

Apple's Next Rumored Products: New HomePod Mini, Apple TV, and More

Thursday October 16, 2025 9:13 am PDT by
Apple on Wednesday updated the 14-inch MacBook Pro, iPad Pro, and Vision Pro with its next-generation M5 chip, but previous rumors have indicated that the company still plans to announce at least a few additional products before the end of the year. The following Apple products have at one point been rumored to be updated in 2025, although it is unclear if the timeframe for any of them has...
Vision Pro M5 Announcement

Apple Updates Vision Pro With M5 Chip, Dual Knit Band, and 120Hz Support

Wednesday October 15, 2025 6:14 am PDT by
Apple today updated the Vision Pro headset with its next-generation M5 chip for faster performance, and a more comfortable Dual Knit Band. The M5 chip has a 10-core CPU, a 10-core GPU with Neural Accelerators, and a 16-core Neural Engine, and we have confirmed the Vision Pro still has 16GB of RAM. With the M5 chip, the Vision Pro offers faster performance and longer battery life compared...
macbook pro blue

Apple's M5 MacBook Pro Imminent: What to Expect

Tuesday October 14, 2025 4:35 pm PDT by
Apple is going to launch a new version of the MacBook Pro as soon as tomorrow, so we thought we'd go over what to expect from Apple's upcoming Mac. M5 Chip The MacBook Pro will be one of the first new devices to use the next-generation M5 chip, which will replace the M4 chip. The M5 is built on TSMC's more advanced 3-nanometer process, and it will bring speed and efficiency improvements. ...
MacBook Pro M5 Screen

New MacBook Pro Does Not Include a Charger in the Box in Europe

Wednesday October 15, 2025 6:59 am PDT by
The new 14-inch MacBook Pro with an M5 chip does not include a charger in the box in European countries, including the U.K., Ireland, Germany, Italy, France, Spain, the Netherlands, Norway, and others, according to Apple's online store. In the U.S. and all other countries outside of Europe, the new MacBook Pro comes with Apple's 70W USB-C Power Adapter, but European customers miss out....