Global Markets

Apple iPhone “Made In India” Now Reality, Price Drop Likely?

Apple IPhone "Made In India" Now Reality, price Drop Likely
Credits: cultofmac

Does this title seem to be making you excited? If you are an iPhone lover, this article has got the news which you definitely wants to read. Yes, you got it correct, Bengaluru is about to get the very first factory of iPhone. Apple has finalized about setting up an assembling factory in Bangalore, or as it is also called as Bengaluru. It became official as soon as the Karnataka government issued a release. This release was to welcome the Apple’s proposal. Let me make you aware of all the pros and cons of this proposal.

  • Apple To Produce Made In India iPhone:

Well yeah, we are on the verge of getting a brand new, “Made in India” iPhones. Bangalore is going to be the spot, where initial manufacturing operations of iPhones will be commenced. Priyank Kharge, the IT minister of Karnataka signed the release issued by the Karnataka government. According to him, this move is going to “foster cutting edge technology ecosystem and supply chain development in the state, which are critical for India to compete globally.” We expect that all the work related to the production and all, will begin from June onwards.

  • Why Just Assembling?

This is the question that must have popped into your head. “Why Just Assembling? Why Not Manufacturing?” Well. I must inform you that Apple uses a very complex supply chain. As far as manufacturing is concerned, all the parts of the iPhones, iPods, iPads, or even Macbooks are actually manufactured by third parties. All these third parties are present across 28 countries. Apple has a total of 766 supplies. Out of a total of 766, 346 are in China. Among the rest, they have 126 in Japan while the remaining 69 in US. Even India has one place in Tamil Nadu, which is a unit of Flextronics.

So, for now, this move is considered as a good starting point. Low sales of iPhones in China have actually opened up a new path of opportunity for India. It is because of the fact that China has always been at a very strong position in the terms of manufacturing, as compared to India. Also, India is one of the three countries that is assembling iPhones. Wow. So this actually has put India as a very important country. This should actually become one of those initial steps that will help India to become preferred partners for every other global majors as well.

  • Concessions Demanded By Apple And The Various Impacts Of This Move:

This global major seeks some concessions for starting the manufacturing of iPhones in India. We provide an overview of all the demands as follows:

  • Apple demands 15 year Customs duty holiday. This is in regard with the import of all the iPhone kits, the various consumables as well as the new and used capital equipment.
  • It also demands exemption from adhering to the domestic sourcing norm of 30 per cent. This is one of the conditions in India for investments in single brand retail. Well, this exemption can allow Apple to inaugurate its own exclusive stores.

Now, what about the consequence of this setting up of assembly factory in Bengaluru? Well, this could possibly mean comparable lower prices for every future products of Apple. This initial process of manufacturing in Bengaluru will take place from around three to four months from now. It is definitely going to create new job opportunities as well as contribute towards the development of the state. This step will enable Apple to start manufacturing at a local level, which will further boost up the Apple’s business.

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  1. Pingback: Apple Stocks Reaches for a New High - Finance Minutes

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