Apple US based to face complexity over Manufacturing plan in India

As it way goes to May 2016 when its chief executive of Apple – Tim Cook whose visit to India and  later talk with PM Modi agreed upon to set up an Apple production and export base in India that goes beyond just assembling part of iPhones. The second phase of Apple Inc.’ plans to make in India which is getting a hand up  due to  firm awaits government approvals and tax benefits that it says are key to making profit reports the person connected to Apple ‘s plan revealed. Adding he says otherwise it doesn’t make sense for Apple to import components paying heavy duties from other parts of the world and assemble here in India.

However, at present, the company only playing other to get services, for instance, paid Wistron to set up the plant on their behalf  and manufacture for Apple Inc., though it can alter also for other company. As it also proves Apple company  of US is not directly bringing investment to Apple Inc., in India. Similarly, the supportive manufacturer can put up a plant and few number of people has been hired to focus only on AppleInc. That not the way AppleInc. Serving country with employment prospect.

PM’s inviting under Make in India basis is not fulfilled, as in the first phase of its India plan apple started working with Taiwanese contract manufacturer Wistron Corp. to assemble the iPhone SE in Bengaluru. Witron, when asked about California-based Apple and sustainability of the business it declined to respond. One of the facts is also that company started its interest in India only  after it sales fell to 14%  in China from earlier years. Though it did not disclose how much revenue it generates in India as Apple’s fiscal year end in September. A passing statement was about “strong double digit” in the country most recent quarter Reports Reuters. In same it was reported that Apple has asked the government to extend tax breaks to its suppliers if India seeks to become manufacturing hub for iPhones and its components.

Ajay Kumar additional secretary in the ministry of electronics and information technology said “we are very happy that Apple has started their phase one manufacturing of mobile phone in India and look forward them expanding their manufacturing footprint in India. We welcome if the ecosystem of component manufacturing units of Apple also moves with them. The discussion is being held with Apple by the government, given the market opportunities and favourable ecosystem which India offers we think it’s win-win opportunities here. However in response to Lok Sabha question raised on August 9 ministry of electronics and information  technology P.P Chaudhary said it has assessed Apple’s iPhones first phase set up in Bengaluru by AIPL includes investment and employment generated by manufacturing facility. It sought information on the second phase development proposed investment and likely employment to be generated.

If by bringing attracting component manufacturer here with good rebates , deduction of duties and tax breaks make sense, not Just Apple inc., other companies too will benefit says the sources but seeing the condition cant well said only September progress and Apple progress can reveal the facts.

Currently, Apple also has competition in the Indian market to tackle Samsung the most used brand. Recent offer on Apple iPhone7 offering 32 GB for 28th and 29 August in Apple fest by  Amazon India  where it offering 1500 cash back. The competition will also be there when in same week Samsung and Xiomi with new launch additional JIO peak up for the trend.