The step comes even as India has projected itself as one of the most prominent markets for smartphone companies in a global market that is rapidly saturating.
While Donald Trump is urging the American technology industry to shift manufacturing efforts to USA shores, it appears Apple didn't get the memo: it's apparently considering setting up a production plant in India.
As per the report, last month, Apple sent a letter to the Indian government citing how it plans to manufacture its high-end gadgets in India, plus seeking financial incentives from the government. In the past, Apple had also sought the Indian government's permission to start selling refurbished iPhones to Indian consumers.
Apple sales have been magnificent as compared to other countries and the tech giants have partnered Flipkart to sell iPhone 7 and iPhone 7 Plus in India. According to new foreign direct investment regulations, foreign-owned single-brand retailers like Apple can open their stores in India only if they purchase at least 30% of the manufacturing materials from Indian vendors.
Tim Cook in May this year had visited India apparently in a bid to expand the company's business in the country.
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Make in India is one of the key initiatives launched by the Indian government to encourage multi-national, as well as national companies to manufacture their products in India. That said, the iPhone only accounts for 2 percent of the total smartphone sales in India.
Today, most of the Apple products are assembled in China by Foxconn Technology Group.
Apple will probably sell off its inventory of older iPhones, mainly the 16 GB versions, by pricing the newer ones very high. By agreeing to assemble iPhones in India, where Foxconn already has smartphone assembly units for various brands like Xiaomi, Nokia and InFocus, the prices are likely to drop.
According to Zauba.com, accessories boxed with the iPhone are taxed separately, and only a year ago, taxes in India were more than double of the custom duty paid for the iPhones at 28.85%. "It's a key part", Cook said.