Apple to make iPhones in India

Apple is set to begin making iPhones in the nation’s tech centre of Bangalore by the end of April.

Wistron spokeswoman Joyce Chou confirmed the company’s Bengaluru plant is anticipated to start Apple’s flagship phones production some time during first half of 2017, but declined to comment on whether it would exclusively be an iPhone assembly site.

According to a CNET report, in 2016, Apple products were most expensive in India.

Apple iPhones, which are now sold in India, are priced higher than other global markets as the government imposes customs duty (around 12.5 percent on MRP) on imported consumer electronics goods.

Last week, the Karnataka government confirmed that they have received an official proposal from Apple to set-up an iPhone assembly unit in Bengaluru.

The US Company took Taiwan’s Wistron Corp.’s help to assemble the iPhones in the tech hub of India, Bengaluru.

“Apple’s iPhones will be made in Bangalore and all devices will be targeted at the domestic market”, said Kharge, IT minister for Karnataka, of which Bangalore is the capital.

For it to be able to sell direct to customers in India, Apple would have to source 30% of the components of its products locally. Last month, Union IT Minister – Ravi Shankar Prasad said that India would consider Apple’s request for incentives with an open mind.

The company asked for the full support of PM Narendra Modi, and the process would also involve Make in India project. No matter how big a company, ignoring the Indian market can be a detrimental move for any worldwide smartphone brand and Apple does not want to be left behind in the second largest smartphone market. During the December quarter, Apple ranked No. 10 in terms of phone sales, but it was the leader in the premium-phone space ($450 and up), responsible for 62 percent of sales in that market.

The state of Karnataka, where Bangalore is located, has reached an agreement in principle with Apple (AAPL, Tech30), said Priyank Kharge, the state’s information technology minister.

India and Apple (aapl) have been dancing around the possibility of a closer relationship for months.

The company collects a large number of used iPhones through upgrade schemes in the United States and around the world every time it introduces a new device, some of which are broken down into their component bits and others refurbished and sold. However, as far back as December of past year, Apple had published a number of job openings for key positions at the Bengaluru facility – including an “iPhone operations program manager”, whose chief responsibilities would include leading the OEM operations team, managing all aspects of component readiness, ensuring availability, and collaborating with a number of “cross-functional” supply chain teams, according to the report.