He also said that India would provide assistance if Apple decides to work with other manufacturers in the region at some point down the road, but notes the two parties did "not discuss any other incentives". Taiwanese company Wistron, an original equipment manufacturer (OEM) of Apple, will make the iPhones out of its facility in the city's industrial hub of Peenya. "We are not talking to any OEM, but Apple Inc., representatives directly", Kharge told ET, referring to the Wistron investment.
Apple iPhones will be manufactured in Bengaluru in India: Here's what we know so far. Assembling phones in Bangalore would help Apple meet local sourcing rules for single-brand, foreign-owned retail stores, thus giving momentum to this other plan of the company.
Headquartered in California, the company had approached the Indian government to request tax reductions including reducing the import and manufacturing duties, which the government had categorically refused.
By producing iPhones locally, Apple would actually aid the country. The company will only perform initial manufacturing operations in the country. Apple Stores will bring about reforms in Apple Care services being offered in India which suffer due to poor operation standards of Apple Resellers.
Subsequently, it was reported that the iPhone maker has partnered up with Taiwan's Wistron Corporation to set up a manufacturing plant in the Karnataka, Bangalore, said India's information technology minister, Priyank Kharge.
In 2016, Apple shipped 2.5 million iPhones into India and even though it is a huge number on its own, the figure only ranked 10th among vendors in the December quarter. Gujarat, Maharasthra and Telangana too were competing for the Apple facility. I think in the longer term, it's a great move, and I feel really good about how we're doing there. This could allow Apple to open its own exclusive stores in India; now Apple-branded stores in India are run in partnership with other retailers.
"We are in discussions on a number of things (in India), including retail stores", Apple CEO Tim Cook said in post-earnings call on January 31, "and fully intend to invest significantly in the country and believe it's a great place to be".