Make in India

Make in India: It is an initiative launched by the Indian Government to encourage multi-national, as well as national companies to manufacture their products in India.

Make in India: Apple iPhone production in Bengaluru to start shortly, so read a notification from PM Narendra Modi’s official app. Thus nearly ‘confirming’ Cupertino large Apple’s iPhone manufacturing plans in India. Though the app mentions ‘International Business Times’ website as the source of the news, the notification from PM Modi’s app to its users is the biggest confirmation to this point about Apple fixing iPhone manufacturing plant in India.

Earlier this week, the government of the Karnataka in a statement had welcome Apple’s proposal to start initial manufacturing operations in Bengaluru, hinting that it is moving forward to the plans to assemble iPhones in India.
Apple’s representatives — Priya Balasubramaniam (vice president, iPhone operations), Ali Khanafer (head, government affairs), Dheeraj Chugh (director, iPhone operations) and Priyesh Povanna (country counsel) have also held a meeting with state ministers and individual division secretaries to sort out long tax incentives and other government officials procedures for setting up of the iPhone manufacturing unit.
In a press statement, Priyank M Kharge, Minister of State for IT (Information Technology) and Tourism, said the meeting with the Apple officers was positive and welcome Apple’s intention to build the iPhone manufacturing plant.

Kharge also indicated that Apple would possibly start manufacturing iPhone at the Bengaluru plant in late April or early could this year. It is believed that Apple’s Taiwan-based supply partner Wistron business firm is increasing the company’s already existing manufactory unit at Peenya in Bengaluru solely for Apple iPhones.

5 things Apple CEO Tim Cook said about India throughout Q1 results conference:

  1.  After five long years, Apple reclaimed its position as the world’s prime smartphone maker within the fourth quarter of the year 2016. The company beat Samsung to create its claim to the top spot. India too played a spectacular role throughout the quarter, making Apple CEO Tim Cook tell his commitment to the Indian market.
    Here’s all that CEO Tim Cook said regarding India throughout the company’s q4 earning’s decision.
  2. Apple CEO Tim Cook hailed PM Narendra Modi’s demonetization. The demonetization drive undertaken by the Indian government is a “great move” within the long term, Apple CEO said.
    “It’s still definitely having some overhang. But I assume within the long term, it’s a great move…,” he added.
  3. Despite the cash ban, the US-based iPhone maker performed well in the Indian market. According to a report in economic times, iPhone sales shot up in India in the 3 days straightaway following demonetization as customers hurried to shop for these devices with their phased-out high-denomination notes and stores reserved sales through back-dated receipts. As per trade estimates, over 1 lakh iPhones were sold-out in these 3 days, which is around three-fourth of this handset’s average monthly sales.
    “Despite the demonetization move in India that created tons of economic pressure their last quarter, despite that, we had incomparable record revenue results, and so we were terribly happy that,” Cook said throughout the earnings decision once asked regarding the company’s performance in India.
  4. Apple India revenues grow 56% year-on-year.
  5. To make vital investments in India
    CEO Cook reiterated Apple’s commitment to investment in India and more that the company is in talks with the govt to open retail stores. “We are in discussions on a range of things, including retail stores, and fully intend to invest considerably within the country and believe it is an excellent spot to be,” he said.
  6. iPads shining sales growing in India
    Apple CEO said that whereas tablet sales have been declining globally, India saw growth. “We posted double-digit growth in both mainland China and India, as we have enlarged distribution channels in those countries and that we still attract a really high share of first-time tablet buyers,” he said.

Apple job offers in Bengaluru:

Apple India in its job portal has also listed 2 production connected job offers in Bengaluru — one for an iPhone Operations Program Manager (OPM) and a New product introduction (NPI) Product Quality Manager — adding credence to the reports that Apple is moving forward with the iPhone manufacturing unit in Bengaluru.
Once operational, India can be the third country when China and Brazil to accommodate Apple iPhone manufacturing units. Bengaluru already hosts iOS App Design and Development Accelerator and the coming iPhone manufacturing plant are going to be Apple’s second massive investment in Karnataka among a span of eight months.

Going by the reports, it looks like Apple is extremely serious regarding its plans for India. The company recorded its highest quarterly revenue collection in its last quarter ending December 2016, but revenue from mobiles continue to decline in developed markets of America, Europe, and China as the smartphone reach has reached its peak. Only India appears to be the bright spot for the Cupertino-based company.

Benefits of Apple iPhones making in India:

Tax differential between locally producing mobile phones and imports is around 10-12%. Currently, iPhone launch prices in India have been amongst the very best globally. Hence, Apple’s decision of manufacturing in India can change them to launch the iPhones at lower costs than it has been within the past few years as a result of higher import taxes in India.

“If things go as planned, Apple may also deliberate to supply iPhones to other neighboring countries from India”,  Karthik J, the senior mobile market analyst at International Data Corporation (IDC), said to IBTimes India.

Apple rivals — Samsung, Asus, Lenovo, Xiaomi and OnePlus among others in association with Foxconn and other supply partners have already established local producing units in India.

By locally assembling the iPhones, the Apple device’s price can get comparatively a lot of reasonable and additionally match international costs. This might additionally lead to lesser carry-in of iPhones from alternative countries, Karthik said.

“Given that iPhone 5S being the top commerce model for Apple, the entry level iPhones would become even more reasonable. In addition, this would even have an emotional connect and attractiveness amongst shoppers who would love to buy “Made in India” products,” Karthik added.

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