Apple.Inc primary assembler in India is said to be planning on expanding its facilities in Bengaluru and is scouting for land in about 100 acres according to the people who are familiar with the matter. Wistron Corp. executives have shortlisted few spots including one that is very close to the airport.
Furthermore, source says that the Taiwanese manufacturer who began iPhone SE assembling in India earlier this year may use the new facility to supply for other brands too. However, Wistron Corp. executives have declined to comment on the same matter.
Though Apple is one of the biggest company in the world, it still is a minor player in India which is now the second biggest smartphone market pushing the USA back. Tim Cook during his visit to India last year has expressed his hopes for an expanded presence. Apple products being on the costlier side is the main reason for the company to fall short in front of Samsung and Xiaomi in price-sensitive markets like India.
The reason for Apple products being pricey for India is because of the additional taxes that the Indian government lay on the products that are manufactured outside India making the already costlier products like the iPhone X much premium. However, on Apple’s earnings call earlier, Tim Cook said the earnings in India had doubled year over year and “great momentum in India.”
Apple has been in discussions with the Federal Government for about a year over expanding manufacturing facilities, opening its own retail stores and exceptions from duties on capital equipment, removal of customs duties and the ability to import used iPhones to refurbish and export.
Hon Hai Precision Industry Co. who is the primary Apple assembler globally has also been in touch with the Indian government for opening setting up plants in India.