Apple to start assembling iphones in Bengaluru by April 2017

Apple Inc has long been rumored to start manufacturing its product line in India. Finally it is materialized and a Taiwanese OEM maker for Apple, is setting up a facility in Peenya, the city’s industrial hub, to manufacture the iPhones. The facility will start production from next April, according to industry sources.

According to sources, company officials have confirmed that Apple is serious about the vastly growing Indian market and it is planning to begin assembly operations and thereafter full manufacture in India by the end of next year. Bangalore is being considered for manufacturing according to multiple sources from the company.

 

If the local manufacturing takes off, Apple will be able to price its phones competitively as full imports attract 12.5% additional duty. This is also the second time Apple is looking towards Bengaluru, after having announced an iOS app design and development accelerator, which will come up sometime next year.

Foxconn, Apple’s largest Taiwan-based OEM, earlier committed to setting up a manufacturing plant in Maharashtra. It was earlier reported that the plant would make only Apple products. But sources say Foxconn has tied up with other players like Xiaomi and OnePlus for local manufacture and not necessarily to only make Apple products there.

The Indian government has been encouraging companies to start manufacturing in India by providing incentives for a long time now. Apple in particular has expressed a great deal of interest in the same as it sees India as a very lucrative market for its portfolio.