Priyank Kharge, IT minister of Indian Karnataka state, gave an interview to Bloomberg website claiming that Apple will start making its iPhone smartphones in the technology capital of India, Bangalore, in late April.
Apple will start manufacturing iPhones in India at Bangalore
“Apple’s iPhones will be made in Bangalore and all devices will be targeted at the domestic market,” said Kharge, noting that the state of Karnataka will help Apple if the company decides to tap other manufacturers in the region.
Apple's intentions to make iPhones in Bengaluru will foster cutting-edge technology ecosystem & supply chain development in the state.
— Priyank Kharge (@PriyankKharge) February 2, 2017
Obviously, this move from Apple side is due to the very low cost of employing in India with low taxes presented by the country and despite this, Apple has been in talks with the Indian government for months to order, supposedly, a tax cut for 15 years, the possibility of which is still being negotiated.
In establishing its own manufacturing plant in India, Apple will open its own stores in India and gain more presence in a country where it has a market share extremely limited. In 2016, Apple sent 2.5 million iPhones to India, but still managed to secure 10th position in the market led by Samsung and dominated by the Android operating system. 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.