Apple Inc. will Begin Assembling iPhones in The Indian Tech Hub Bengaluru

Company - Pavan Pandey - Feb 03,2017

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apple inc will begin assembling iphones in the indian tech hub bengaluru

According to an Indian government official, after months of discussion, Apple Inc. is ready to start assembling iPhones in the country’s tech hub, Bengaluru.

According to the Karnataka’s information technology minister, Priyank Kharge, India’s Southern state has got a contract in principle with American technology company Apple Inc. Officials from the technology giant met the minister in January and also confirmed the timeline. 

Mr. Kharge also added that the iPhone assembly could begin as soon as in the month of April at a factory on the outskirts of Bengaluru. The factory will be run by a Taiwan-based Apple supplier, Wistron Corp.

Apple Inc. would neither confirm nor disagree with the Indian official’s comments. The technology company mentioned in a statement last week that it has been speaking to the Indian government about growing Apple’s local operations.

The outset of iPhone manufacturing in India comes after months of conjecture on Apple Inc.’s strategy for the market, which is led by its rival, Samsung Electronics Co. The company hints an improved focus on the country, where Apple just scrapes into the top 10, as growth starts to slow in China and other more mature countries.

American tech giant, Apple presently sells iPhones and other products in India through company’s local distributors, but it lags far behind Samsung Electronics Co. and Chinese companies such as Oppo, Lenovo and Xiaomi in terms of market share.

Apple has been troubled by a law that banned it from opening its Apple retail stores in India. Foreign retailers can only sell products if 30 percent of the raw materials used to manufacture them are sourced locally. The Bengaluru assembly unit could pave the way for the first Apple stores in India.

India presently has more than 300 million smartphone operators and is fully poised to overtake the United States as the world's second biggest market for the iPhone this year.