In a major enhancement for the "Make in India" campaign, Apple will begin to assemble phones in Bengaluru facility from the end of April, Priyank Khagre, the IT minister of the state of Karnataka said in a tweet. The plant will be handled by Taiwanese manufacturer Wistron Corp and later the work may be expanded to other suppliers like Han Hai Precision Industry Ltd.
India will be the third country globally to assemble iPhones. India is the fastest growing smartphone market in the world and third largest after United States and China. India has been a very strong market for Apple Inc. over the years. The fast growing market and the increasing economy is the reason for Apple’s investment in India. Tim Cook Apple’s CEO believes that Apple is just, "scratching the surface in India", and it will be the market leader one day.
Apple’s iPhone SE will be the first device from the company to be assembled in India. SE is one of the cheapest Apple devices in the market. The company has aimed to manufacture 3-4 lakh units of iPhone SE in India. As the phone will be made locally, the price of the product is expected to go down. iPhone SE is currently priced at Rs 28,000-30,000.
Last year Apple created 4,000 jobs by opening a new office in India. Now with the unit in Bengaluru, Apple is expected to create many more employment opportunities and billions of dollars of investment which will help Modi’s ‘Make in India’ campaign and an equivalent boost to the Indian economy.
Tim Cook visited the country for the first time in May 2016, as he sought government approval for Apple to open its own stores. Sources claim that Apple had sent a list of request to the government, a long list of financial concessions which include 15 years of tax holiday on import of components and equipment’s. The government has not yet confirmed about the tax relaxations, as other tech giants like Samsung and LG are not liable to the relaxations.
With "Make in India" setting benchmarks all over the world, U.S President Donald Trump said he wants to see iPhones made in Apple’s home market, part of a broader push to get companies to keep or create manufacturing jobs.
As Samsung and other smartphone makers have started manufacturing their phones in India, which helped them dominate the market, as taxes were low and the smartphones were priced very aggressively, resulting in outstanding sale results. With Apple’s new manufacturing unit in Bengaluru, it certainly impressions that Apple is looking forward to this competition and is gearing up for a long run.
Apple’s intention to manufacture in India will foster a cutting edge technology ecosystem, which is critical for India to compete globally. "Make in India" is helping India get international trade recognition and investments, and with Apple’s initiative, India will see a global recognition in the technology sector.
"Make in India" has made sure that International companies should not take advantage of our vast consumer base without making their own capital investment. As "with great consumers, comes great opportunities", and the international companies are recognizing the prospects through "Make in India".
