Apple set to ring in $1 billion investment
The move by the US electronics giant comes at a time when the US and China are engaged in a trade war.
The move by the US electronics giant comes at a time when the US and China are engaged in a trade war, prompting companies which are heavily dependent on manufacturing in China to look elsewhere for making their products. “Apple will be investing $1 billion in India through its partners. They have said the production will be used for meeting the demand for its products across global markets,” an official source told TOI.
Foxconn, Taiwan’s contract manufacturing behemoth and the biggest production partner for Apple globally, will be investment partner for the iPhone maker’s latest push. Its factory in Chennai will be used to manufacture products for Apple’s global markets. Also, a host of component suppliers to the company will be making investments in the region for the local push.
Apple had initially begun limited local production of certain models in India through the Bangalore factory of another manufacturing partner — Wistron of Taiwan — though the fresh expansion is now being undertaken by Foxconn.
The source said “testing is under way” for the products that have been made in India, and added that “Apple is also seeking clarity” on export incentives that the government currently offers.
Apple did not comment on the issue.
IT and electronics minister Ravi Shankar Prasad said the government has also exhorted the iPhone maker to expand manufacturing base in India, and use the country as an export hub. “Apple has started manufacturing iPhones in India... making components and are exporting as well... Apple is on board as far as India’s success story is concerned,” Prasad said after a meeting with electronics makers.
Apple hopes to gain a larger share in smartphone sales through the local push, especially if its devices get priced aggressively to rivals such as Korea’s Samsung and China’s OnePlus. Apple also feels that higher production in India, including towards exports, would help the company meet the 30% local sourcing rule to open its own stores here. Apple is understood to be working on plans to set up three brick-andmortar outlets in India, besides an online store. The company is learnt to have conveyed this to the government, and said that the stores — expected to come up in Mumbai and Delhi — would be in line with its ‘global experience’ centres.