A local government official disclosed on Friday that India will be manufacturing iPhones as of a low labor cost and capacity to produce more phones.
Apple has not yet confirmed the news but they have shown their interests in developing India’s economy. CEO Apple, Tim Cook recently said that they intend to invest heavily in India and help create more opportunities.
Talking to the media, Priyan Kharge, the Minister of Information Technology said, “We have an understanding with Apple and we expect them to start manufacturing in Karnataka by the end of April”.
Bengaluru, as of a tech hub, will be the focused area for iPhones’ manufacturing.
As of the advanced technologies introduced in India and a low labor cost, it’s expected that iPhones would be manufactured for a less cost, helping the local market to easily afford the new iPhones.
Apple seems to be eager in investing in India. Last year, they shipped more than two million iPhones alone in India with a hope to target more users.
“They had a fantastic 2016 in India and shipped more two million devices to India, and now they’re looking to ultimately manufacture here as that gives them more flexibility to respond to market changes,” said a researcher from IDC.
iPhone holds only 2 percent of the total mobile market of India but as of this investment plan, experts believe that this percentage would rise drastically.
Wistron Corp, a Taiwanese electronics manufacturing company, is in line to take up the responsibility of manufacturing iPhones in India.
However, the Indian law would require Apple to procure 30 percent of iPhones’ components from the local market. Hence, reducing the price of each set and contributing more to the Indian economy.
To invite more manufacturing plants, the Indian government is in the phase of persuading foreign companies to install their plants in the country.