Apple seems well on course to set up a manufacturing plant in India's Silicon Valley, Bengaluru. It is reported that the company's manufacturing partner Wistron will be setting up a plant in the city with several sources confirming the timeline for the rollout of locally assembled iPhones in the country.
Quite interestingly, Apple has stuck to its decision of manufacturing iPhones in the sub-continent, despite the Indian government rejecting its plea for tax concessions involving iPhone operations in India.
Apple has made its decision known to the Government of India wherein it plans to first start producing the iPhone 6 and 6s in the next 4 to 6 weeks, and then eventually make iPhone SE handsets after three months.
Welcoming Apple's decision to invest in India, the government has reportedly agreed to leverage tax concession demands within its capabilities to further strengthen their business relationship.
The iPhone maker has allegedly requested a 15-year tax concession and an exemption from the rule of locally sourcing at least 30% of the components for use in its devices.
It is not yet known if Apple would pass the benefits of cheaper manufacturing costs in India to consumers in terms of pricing the iPhones at launch.
Several earlier reports suggest that Apple will be focusing on creating iPhones entirely to meet the local demand and not for exporting them to other markets.
"We've been working hard to develop our operations in India," an Apple spokeswoman said.
"We appreciate the constructive and open dialogue we've had with government about further expanding our local operations." Meanwhile, a Wistron spokesman said the company doesn't comment on "rumor or speculation."
[Source: Wall Street Journal]