Apple will start "trial assembly" of iPhones in India, while continuing to pursue tax sops from the govt.

A recent report suggests that Apple will start “trial assembly” of iPhones in India next month at the Bengaluru facility being set up by Wistron.

Wistron is a Taiwanese OEM (Original Equipment Manufacturer) for Apple.

The report, published in The Economic Times, quotes Karnataka state officials as saying that they would like to see Apple brings its “entire component-making ecosystem” to India and begin exporting products from there. Apple is also expected to set up a second manufacturing facility in the near future.

Apple has requested a number of tax and customs duty concessions before it begins the assembly or manufacture of iPhones in India. However, most of Apple’s requests were denied.

Other manufacturers in India, including Samsung, Oppo and Xiaomi work within the Make in India framework set forth by the government and already receive a number of tax sops and other concessions. Apple’s demands might be construed as excessive in this light.

State officials apparently believe that Apple will continue to lobby the Centre for more tax sops independent of its Bengaluru plans, as they believe that Apple sees India as a lucrative market that can’t be ignored.

Karnataka’s IT minister has reportedly asked the Centre to do its part in encouraging “high-end manufacturing.”

Published Date: Apr 20, 2017 09:59 am | Updated Date: Apr 20, 2017 09:59 am