Apple to setup iPhone manufacturing facility in Bengaluru

About 500,000 iPhones can be produced at the factory per day, and almost half of global iPhone production comes from this factory. Currently, around 12.5 percent of import tax is levied on each iPhone sold in India.

Foxconn, the Taiwanese manufacturing giant behind Apple's iPhone and numerous other major electronics devices, aims to automate away a vast majority of its human employees, according to a report from DigiTimes.

"Several companies in India are manufacturing mobile phones in India".

The company is reportedly "very serious" about beginning assembly operations.

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Local manufacturing is expected to help Apple price its phones more competitively in India as it now attracts 12.5 per cent additional duty on imports. Data from Hong Kong-based Counterpoint Technology Market Research showed that Apple sold 2.5 million iPhones in India from October 2015 to September 2016, a rise of more than 50% over the year-ago period. It was assumed that the plant would manufacture Apple phones, however, Foxconn has tied up with Xiaomi and OnePlus to set up local manufacturing there, the report adds. It is poised to overtake United States as second biggest mobile business market next year.

During his weeklong visit, Cook inaugurated Map Development Center in Hyderabad and new iOS App Design and Development Accelerator in Bengaluru. Instead, the company is going with Wistron to develop and manufacture iPhones in India.

However, manufacturing or a "true make in India" product would be possible only if the government creates conductive conditions here which would attract companies to setup manufacturing parts. Foxconn now produces around 10,000 Foxbots a year. However, Apple spokeswoman declined to comment on the matter. This initiative is seen as an advantage to Apple because India is one of the fastest-growing smartphone markets at present, according to Fortune.

The finance ministry had rejected an earlier proposal by Apple to set up wholly owned outlets in India, which sought exemptions from the compulsory 30 per cent local sourcing norm.

  • Kyle Warner