Apple has been to get the formalities done to start making iPhones in India since months. After negotiating with the Indian government, Apple is finally ready to start making iPhones in India, which is world’s second largest country in terms of population and also a very growing market for mobile users.
Apple’s Taiwanese manufacturing partner Wistron will start making iPhone 6 and iPhone 6s within 4 to 6 weeks at a plant in Bangalore, and it will also add the iPhone SE to the mix within a three-month time frame.
An Indian official confirmed to the Wall Street Journal,
“Almost all preparations have been done for launching Apple’s first phase project in Bangalore through Wistron”
Now after the approval, we might see some lower priced iPhones in India. Manufacturing locally would allow cutting the cost by $100 of iPhones, a lot of it due to import taxes in India.
Seems like Apple has sought some heavy tax breaks in exchange, but negotiations with the Indian government have been tough and the unofficial information is that the government has not yet accepted most of Apple’s demands.
“We will try to accommodate as much of their demands as possible, but they too appreciate and understand our limitations,” an official working closely with Indian Prime Minister Narendra Modi said.