With Apple gearing up to start iPhone manufacturing in Bengaluru towards early 2017, a panel comprising of senior officials could probably meet to discuss the possibilities of incentives. If Apple decides to manufacture iPhones in India, then the company would demand series of exemptions and incentives for the manufacturing plant.
Based on the reports so far, Apple has almost decided to establish a plant in Peenya, Bengaluru. Expected to be manufactured in partnership with Taiwan-based Wistron, the Cupertino-based tech giant will be able to slash prices substantially because of the absence of additional import duty, which is currently pegged at 12.5%.
Apple wants to know about incentives to start a manufacturing facility
According to reports, Apple has sought a detailed clarification from the Government as to what kind of incentives they get if they start production in India since the company manufactures cutting-edge technology products.
Apple also sought clarity about the various offers under the modified special incentive package scheme, which is created to boost electronic manufacturing in India. Meanwhile, Apple declined to comment when asked about their proposed plans to establish a facility in India.
As per reports, Apple had already conveyed all the demands to the top officials inside the government. However, the requirements of Apple are forwarded to relevant departments for required approvals.
Foxconn’s attempt to establish a facility in Maharashtra foiled
Meanwhile, Foxconn also disclosed that they are willing to build a manufacturing plant for iPhones in Maharashtra. However, Apple doesn’t like the approach of Foxconn since the Taiwan-based OEM maker confirmed that they are also in talks with Xiaomi and OnePlus to assemble smartphones at the same facility.
The main aim of Apple is to establish their own exclusive manufacturing plant. As of this writing, Apple sells iPhones through a nationwide network of distributors and retailers including a partnership with top e-commerce companies.
Apple’s attempt to sell refurbished handsets halted by the Government
Recently, Apple made an attempt to import and sell refurbished iPhones in India, which was halted by the Commerce Ministry. In 2015, the proposal to sell refurbished iPhones was rejected by the environment ministry. Moreover, both telecom and industry ministries objected to this move by Apple.
In May 2016, Apple announced the opening of design and development accelerator in Bengaluru to boost the requirements of iOS developer community. Moreover, the center will also motivate and guide developers based in India to take advantage of Swift programming language. If Apple succeeds in its plan to establish a facility in the city, it will be the second significant investment in the city.
Apple India sales figure touched Rs 9997 crore in 2016, which is a sharp increase when compared to Rs 6472 crore in 2015. The net profit of the company rose to 21% and reached Rs 294 crore. The main reason for the massive growth is attributed to the increased penetration in the retail segment and slashing of prices for old iPhone variants.