Apple is reported to be setting up an iPhone manufacturing facility in Bangalore and assembly operations could begin as early as April 2017. It will become the third contract manufacturer to build Apple smartphones after Foxconn and Pegatron. The new plant will be set up by Apple's Taiwanese manufacturing partner Wistron, the report said. This will give a big boost in the sales of Apple devices, especially iPhones which still have not made much of a mark in a big smartphone market like India.
Today's report follows purported insight from the analysts at NPD, who claimed the iPhone 7 lacked enough "compelling features" to fully capitalise on Samsung's Galaxy Note 7 disaster.
Apple is slated to cut the production of iPhones by about 10 percent in the first quarter of the next year, according to reports.
The gloomy outlook for sales of Apple's iPhone 7 in 2017 is another reason the company is widely expected to launch an impressive iPhone model in September with a higher-quality screen, wireless charging, and new glass design.
Hence the local manufacture of Apple's iPhone will help the company price the smart phone competitively as the full imports will add up to 12.5 % additional duty.
Since the visit of Apple CEO Tim Cook to India in May, the company has shown serious business interest in the Indian market. Plus, Apple will be exempt from the additional duty of 12.5% which is now levied on its products.
Foxconn has capabilities of producing 10,000 Foxbots each year. Apple too agrees that India is an important growth market for the company.
Last week, the Wall Street Journal reported that Apple was seeking financial incentives from the Indian government before it agrees to make products like the iPhone in the country. After some skepticism, Apple is now finally paying attention to India.
Now, Apple wants the government to relax this rule so that it doesn't have to print the product-related information directly on the device and instead provide the information through the software or on the outer packaging.