The department of industrial policy and promotion (DIPP) has hinted that manufacturing policy norms may be liberalized for all electronics manufacturers on the strength of demands made by Apple Inc.as a pre-condition to make its iPhones in India.
Wistron spokeswoman Joyce Chou confirmed the company's Bengaluru plant is anticipated to start Apple's flagship phones production some time during first half of 2017, but declined to comment on whether it would exclusively be an iPhone assembly site. Cited by Barron's Tech Trader Daily, the analysts said signs in Apple's supply chain have pointed to an earlier start on production. The company sold only 2.5 million phones in the country previous year, which accounts for only 2 percent of the market, and all sales were made through third-party retailers.
After months of negotiations, Apple is set to start manufacturing iPhones in the Indian tech hub Bangalore, a government official says. RBC Capital Markets reissued an "in-line" rating and issued a $125.00 target price on shares of Apple in a report on Monday.
Apple has wanted to tap the vast and potentially lucrative Indian market, which with a population of around 1.25 billion people, is among the largest on the face of the Earth; and the move makes India the third country - along with China and Taiwan - in which iPhones are manufactured.
Chief Executive Officer Tim Cook said on an earnings call last week that India is "the place to be". In this manner practically confirming on Apple's iPhone manufacturing plans in India.
International Business Times, India, in a bid to get a confirmation, asked Apple India media representatives about the recently concluded meeting with the Karnataka government.
Now, the company considers India as an important market, as global sales slump.
At this point, it's not known if Apple would be allowed to sell used iPhones in the country, but previous requests of the company do this were highly criticized by officials and rivals alike. "We are in discussions on a number of things, including retail stores, and fully intend to invest significantly in the country". He further said that the state would help the company if it wants to turn to different contract manufacturers in the state.
Getting the price down by local assembly is critical for Apple as the market is very price-sensitive.
Also, it would make a mockery of Prime Minister Narendra Modi's "Make in India" programme by turning it into "Dump in India" programme.
Global iPhone sales dropped in 2016, but growth remained strong in India with annual phone sales reaching almost 2.5 million phones a year ago.