Bengaluru: Apple Inc is all set to manufacture iPhones in India. After successful negotiations with the government for greater concessions to set up a manufacturing unit in the country, has decided to go with Bengaluru for its first plant.
The Karnataka government on Thursday issued a release welcoming Apple’s proposal “to commence initial manufacturing operations” in the state.
The release, signed by state IT minister Priyank Kharge, said Apple’s intentions to manufacture in Bengaluru “will foster cutting edge technology ecosystem and supply chain development in the state, which are critical for India to compete globally.” Though it did not provide a timeline, production is expected to begin in June.
“We made concerted efforts to reach out to Apple directly. We want to create a conducive environment for global majors like Apple so that we emerge as their preferred partner in their India growth story,” Kharge told. Gujarat, Maharasthra and Telangana too were competing for the Apple facility.
India will be only the third country globally to assemble iPhones, an indication of how important the country has become for one of the world’s most valued companies.
According to a report, Apple’s representatives, including Vice President iPhone operations Priya Balasubramaniam, Government Affairs Head Ali Khanafer, Director iPhone operations Dheeraj Chugh, and Country Counsel Priyesh Povanna met with the ministers and officials of the Karnataka government.
Following the meetings, Apple said it appreciated the open and constructive dialogue it held with Indian officials, around the expansion of its local operations in the country. Any final decision around manufacturing in India however, is likely to still be contingent on the government’s willingness to concede ground on the concessions sought by the company.
Tiaiwanese OEM maker for Apple, Wistron, may manufacture iPhones in India. India-made iPhones will let Apple price the phones more competitively, making them affordable for more Indians.
Apple uses a fairly complex supply chain. The parts for the iPhone, iPad, iPod and Mac are manufactured, mostly by third parties, across 28 countries. It has 766 suppliers, of which 346 are based in China, 126 in Japan, and 69 in the US. There is one in India, a unit of Flextronics in Sriperumbudur in Tamil Nadu.