Production In India
Apple and the Indian government are discussing iPhone production in India. Apple is also trying to persuade the Indian government to allow the opening of Apple Stores in India, according to the Wall Street Journal on December 20 (local time).
Last month, Apple sent a letter to the government to provide an explanation as to its future investment plans and ask for financial incentives. Earlier in May this year, CEO Tim Cook met with Prime Minister Narendra Modi in India.
According to market research firm IDC, the Indian smartphone market is expected to become the second-largest in the world next year and its growth rate is likely to surpass that of the world’s largest, that is, the Chinese market, which is slowing down these days. Still, Apple’s share in the fast-growing market is less than 5% as of now. This is because rivals such as Samsung Electronics and Xiaomi are running their own manufacturing facilities and supplying inexpensive products in India unlike Apple.
Apple tried to open its own smartphone store in India in January this year but failed. Any smartphone maker wishing to do so is required to use components made in India for at least 30% of its product with a grace period of three years. The quality of electronic components manufactured by Indian companies is relatively low, and the only option is to produce them in the country.