Tim-Cook-IndiaFollowing reports this month that Apple has been in talks to manufacture its products locally in India, as well as set up a distribution center in the country, an article by Bloomberg today suggests that the Cupertino company is now asking India to offer up tax concessions on iPhones created within its borders.

According to people familiar with the matter, Apple is asking for lower import taxes and manufacturing duties, which could lead to lower-cost iPhones -- a solution that Apple CEO Tim Cook has admitted is needed in India.

In a separate report by The Times of India, industry sources claim that Apple is looking to build an iPhone manufacturing plant in Bangalore, India and begin production as soon as April. Specifically, Apple supplier Wistron is said to be the partner for the Bangalore facility, and the plant is poised to be a major contributor to the Indian iPhone supply chain by the end of 2017.

Top sources in the company confirmed to TOI that Apple is "very serious" about beginning assembly operations —and thereafter full manufacture — in India by the end of next year. "Bangalore is being looked at seriously," said multiple sources within the company. Local manufacture will help Apple price its phones competitively as full imports attract 12.5% additional duty.

Earlier in the year, Apple announced plans to build an iOS App Design and Development Accelerator in Bangalore in order to support engineering talent and boost growth in India's iOS developer community. Around the same time that the Accelerator was announced, the company revealed plans for a new development center in Hyderabad, India focused on Apple Maps development.

The concessions and new Bangalore-based facility are the newest steps in Apple's attempt to bolster its presence in India. This year, Apple struggled with the government's rules on foreign direct investments, but a ruling over the summer finally cleared the way for Apple to begin expanding its retail presence in the country. Despite India's own growth as the third-largest smartphone market in the world, Apple sold 35 percent fewer iPhones in India throughout 2016 than it did in 2015.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tags: India, Wistron

Top Rated Comments

RickeshPatel Avatar
56 months ago
No wonder why. Even Apple's cheaper phones are pretty expensive for a very poor population.

When there are so many other cheaper phones that can do much of what expensive iPhones can do, it is hard for Apple to compete.
The population in total actually isn't as poor. The income gap is wider but there's still a large percentage of the population that can afford the things we do in America. India's economy is now larger than the U.K's by the way.
Score: 6 Votes (Like | Disagree)
69650 Avatar
56 months ago
The richest company in the world wants tax concessions from one of the poorest countries in the world where children sleep on the streets. Cook has absolutely no sense of social responsibility.
Score: 3 Votes (Like | Disagree)
konqueror4u Avatar
56 months ago
I didn't mean everyone in India is poor. But, it is a very poor country.

Also, comparing the UK economy to India isn't exactly a good comparison. I think India has like 20 times the amount of people that the UK has. Maybe more.

My wife is Indian, and we talk about visiting India every once in a while. The way she talks, the middle class of India would be like living in poverty here in the US.

Yes, not everyone is like that, and it is getting better over time. But, I don't think Apple has much of a chance to have a large market share of India, unless they have a much cheaper phone. Also, many of the feature of the iPhone do not work in India.
Right now apple sells $650 iPhone at $1000 in India. I think it can increase its market share for sure if it can price it at $650. India is the worlds fastest growing major economy.
[doublepost=1483132328][/doublepost]
In America, even people in the ghetto have iPhones...
In India there are no two year contracts or upgrade plans like US. If people were asked to pay the full price of iPhone with out installments I think situation will be no different.
Score: 3 Votes (Like | Disagree)
vertical smile Avatar
56 months ago
The population in total actually isn't as poor. The income gap is wider but there's still a large percentage of the population that can afford the things we do in America. India's economy is now larger than the U.K's by the way.
I didn't mean everyone in India is poor. But, it is a very poor country.

Also, comparing the UK economy to India isn't exactly a good comparison. I think India has like 20 times the amount of people that the UK has. Maybe more.

My wife is Indian, and we talk about visiting India every once in a while. The way she talks, the middle class of India would be like living in poverty here in the US.

Yes, not everyone is like that, and it is getting better over time. But, I don't think Apple has much of a chance to have a large market share of India, unless they have a much cheaper phone. Also, many of the feature of the iPhone do not work in India.
Score: 2 Votes (Like | Disagree)
d5aqoëp Avatar
56 months ago
I think the whole point of manufacturing in India is to lower the prices and attract more customers into its ecosystem.
Wrong. The whole point of manufacturing in India is to keep the prices same and increase their margins.
Score: 2 Votes (Like | Disagree)
kstotlani Avatar
56 months ago
Apple should bring manufacturing back to America... If other countries want our products they should pay more than Americans are paying..
And they do.
Score: 2 Votes (Like | Disagree)

Top Stories

april 2021 event coverage feature

Apple Event Live Coverage: New iPads, AirTags, and More Expected [Event Over]

Tuesday April 20, 2021 9:07 am PDT by
Apple's virtual "Spring Loaded" event kicks off today at 10:00 a.m. Pacific Time, with Apple expected to debut updated iPad models and perhaps some other hardware such as AirTags or iMac models based on Apple silicon. Apple is providing a live video stream on its website, on YouTube, and in the company's TV app across its platforms. We will also be updating this article with live blog...
m1 imac colors

Apple Announces Redesigned iMac With M1 Chip and Seven Color Options

Tuesday April 20, 2021 10:22 am PDT by
Apple has announced a new, redesigned 24-inch iMac, featuring an M1 chip, a 4.5K display, and a range of color options, as well as an improved cooling system, front-facing camera, speaker system, microphones, power connector, and peripherals. The new iMac features a completely new compact design, and comes in a range of seven striking colors, including green, yellow, orange, pink, purple,...
iphone 12 preorder purple

Apple Launching iPhone 12 and 12 Mini in New Purple Color on April 30

Tuesday April 20, 2021 10:08 am PDT by
Apple today announced that the iPhone 12 and iPhone 12 mini will be available in a new purple color starting April 30, with pre-orders starting this Friday. Apple is also releasing a new MagSafe Leather Case and Leather Sleeve in Deep Violet, a Silicone Case in Capri Blue, Pistachio, Cantaloupe, or Amethyst, and a Leather Wallet in Arizona, all available to order beginning today. iPhone...
14

Apple Says iOS 14.5 Will Be Released 'Next Week'

Tuesday April 20, 2021 11:08 am PDT by
Apple today in a press release about its new AirTag item tracker announced that iOS 14.5 and iPadOS 14.5 will be available starting "next week." iOS 14.5 and iPadOS 14.5 are packed with new features, including the ability for iPhone users who are wearing an Apple Watch to unlock the iPhone with Face ID while wearing a mask. iOS 14.5 and iPadOS 14.5 will also be the minimum software versions...
ipad pro with m1 chip

Apple Introduces Next-Generation iPad Pro With M1 Chip, Thunderbolt, 5G, XDR Display, and More

Tuesday April 20, 2021 10:40 am PDT by
Apple today announced the next-generation iPad Pro with the same M1 chip found in the latest Macs, Thunderbolt and USB4 support, 5G connectivity on cellular models with mmWave support in the United States, and more. With an 8-core CPU and 8-core GPU, Apple says the M1 chip in the new iPad Pro provides up to 50% faster performance and up to 40% faster graphics compared to the A12Z Bionic chip ...
f1618938547

Apple Announces AirTag Tracking Devices Starting At $29 Each

Tuesday April 20, 2021 10:10 am PDT by
Apple today announced AirTag, a Tile-like Bluetooth tracking device that's designed to be attached to items like keys and wallets for tracking purposes, letting you find them right in the Find My app. AirTags are accessories for attaching to backpacks, luggage, and other items. Any U1 device like the iPhone 12 can be used for precision finding to guide you right to the item you're looking...
Ports 2021 MacBook Pro Mockup Feature 1 copy

Stolen MacBook Pro Schematics Confirm Apple's Plans to Add More Ports and Remove Touch Bar

Wednesday April 21, 2021 10:31 am PDT by
Schematics stolen from Apple supplier Quanta Computer outline Apple's plans for the next-generation MacBook Pro models that are expected in 2021, and clearly confirm plans for additional ports and a return to MagSafe. MacRumors saw the schematics after they were leaked online, and some of them feature the logic board of the next-generation MacBook Pro. On the right side of the machine,...
iPad Pro

New 12.9-Inch iPad Pro Will Be 0.5mm Thicker to Accommodate Mini-LED Display

Monday April 19, 2021 11:30 am PDT by
The upcoming 12.9-inch iPad Pro will be thicker than the previous-generation version, likely due to the inclusion of the mini-LED display. We've heard several rumors about the change in thickness, and now leaked design images have confirmed it. A source that designs accessories for Apple devices sent MacRumors a series of photos that feature exact dimensions for the new iPad Pro models, and...
iPad Pro Feature Orange

Wedbush Analysts Say 'Spring Loaded' Event Will Debut New iPads With 'Modest Price Increase,' Along With 'a Few Surprises'

Monday April 19, 2021 6:37 am PDT by
Apple is planning to launch a new entry-level iPad, iPad mini, and iPad Pro at its "Spring Loaded" event tomorrow, along with "a few surprises," according to Wedbush analysts. In a new note to investors, seen by MacRumors, Wedbush analysts Daniel Ives and Strecker Backe explained that the iPad will be the main focus of Apple's "Spring Loaded" event, with new entry-level iPad, iPad mini, and ...
maxresdefault

Apple Event 2021: Everything Apple Announced at Its 'Spring Loaded' Event in Just 6 Minutes

Tuesday April 20, 2021 4:23 pm PDT by
Apple today held its first event of 2021, and it was one of the most exciting events that we've seen in some time. Apple announced a whole slew of new products, including an M1 iMac, an M1 iPad Pro, a refreshed 4K Apple TV, and the long-awaited AirTags. Subscribe to the MacRumors YouTube channel for more videos. It took Apple an hour to introduce all of the new devices during its virtual...