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Report: Apple Will Soon Manufacture iPhones In India

Report: Apple Will Soon Manufacture iPhones In India

A major hurdle that prevented Apple Inc. (NASDAQ: AAPL) from fully taking advantage of the Indian market has now been removed.


India's tough protectionist laws make it nearly impossible for foreign companies like Apple to sell products in its own branded stores unless part of the manufacturing materials come from Indian vendors or are manufactured in India.

Apple delivered a letter to India's government in late 2016 in which the company requested financial incentives to begin manufacturing products in the country.

Apple Reaches An Agreement With India

On Friday, CNNMoney reported that an agreement has now been reached between Apple and the state of Karnataka, where the tech hub city of Bangalore is located.

India has been singled out by some analysts as Apple's next leg of growth.

Priyank Kharge, the state's information technology minister, told CNNMoney that Apple could begin production of iPhones in India as soon as April and will be operated by Wistron, one of Apple's suppliers that is based in Taiwan.

The agreement has yet to be confirmed by Apple, but if correct, it will offer a direct path toward the first Apple stores in India.

CNN's New Delhi Bureau Chief Ravi Agrawal noted that Apple hasn't made much of a dent in the Indian market because its products are considered expensive by local standards. Analysts he has spoken with estimate that Apple's market share of the Indian smartphone market is between 2 and 4 percent.

However, Agrawal pointed out that Apple would avoid paying import duties if it begins manufacturing its devices in the Indian market and doing so would make the iPhone more competitive in the very cost sensitive market.

Photo credit: bjoern, flickr


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