Donald Trump may or may not succeed in getting Apple to move its manufacturing facilities to the US, however Wistron, a Taiwanese original equipment manufacturer for Apple, is setting up a manufacturing facility in Peenya, Bangalore. The facility is set to start churning out some high-end tech as early as April, next year, stated a TOI report backed by highly placed sources.
Apparently, Apple is certain of its intentions of creating its next assembly and manufacturing hub in India. The company will be starting off with a single assembly unit in Bangalore that may eventually move up to manufacturing iPhones within the country. Setting up a manufacturing unit in the country will provide Apple with a host of benefits. The most prominent of these will come in form of tax relaxations.
Apple’s iPhone imports currently attract 12.5% additional duty. This forces the company to sell of its prodicts at a higher price compared to other markets. Avoiding this duty by manufacturing the iPhones within the country may lead to a lowering in price and better margins for iPhone sales in India.
And make no mistake, India is an important market for smartphone manufacturers — including Apple. Considering that the smartphone market in China is nearing saturation and also consists of plenty of domestic players who have managed to get a good grip on the market, India is a rather easier target what with the growing purchasing power of the people. While most would have shied away from purchasing an iPhone with a 50K+ price tag a few years ago, the number is growing rapidly in recent years.
According to market reports, the company sold as many as 2.5 million iPhones in India in the one year period up till October, 2015. This marks a 50 percent rise over the exact same period, one year ago. The company has also been relying on different stratagems, such as attempting to sell refurbished phones or selling older models at lower prices, so as to cater to the price conscious market. A manufacturing facility in India would allow Apple to create devices for sale within the country.
The Cupertino giant certainly appears to be harboring a particular affection for Bangalore. The company has already announced a design and development accelerator in the city, that will help programmers learn and leverage it’s swift programing language. As more and more people get acquainted to swift, the developer community surrounding Apple’s ecosystem will also grow, leading to more apps and content for Apple products including iPhones, Apple Watch and TV.