Apple is Finally Going to Start iPhone Manufacturing in Bangalore

Apple is all set to start iPhone manufacturing in India in the next three to four months.

The government of the Indian state of Karnataka has welcomed a proposal from Apple to begin initial manufacturing operations in the state, it said.

"Apple's intentions to manufacture in Bengaluru will foster cutting edge technology ecosystem and supply chain development in the state, which are critical for India to compete globally," the Karnataka government said.

Apple had expressed its intentions of manufacturing locally in India last year, but the company was expecting to get some special tax concessions. In December, Apple partnered with Taiwanese manufacturing company Wistron to start assembling iPhones and other Apple products at Peenya on the outskirts of Bangalore, Karnataka.

The Indian government is offering various benefits to overseas companies to set up manufacturing plants in India. This plan is also in line with the government’s Made in India plan. Manufacturing locally will further boost Apple’s business in India, which has been in its best shape in the recent months. The company is dependent on rising smartphone markets like China and India for increasing its market share. Company’s CEO Tim Cook said India is "a great place to be," adding that the company had its all-time record revenue in the nation.

iPhone fans have a reason to rejoice

India is the third country globally to assemble iPhones and it indicates how important the Indian smartphone market is to the world’s most valuable company.

Apple commands a significant market share in high-end smartphones and with more affordable phones it has the opportunity to take over the mid-segment which is currently dominated by Chinese smartphones. We can also expect that the company will tie-up with local service providers to lower the price of ownerships with annual contracts like in the US. Apple as a brand is far more powerful compared to others and is trusted by people all over and it won’t be surprising if the company brings a mid-segment iPhone for price-conscious Indian consumers to deepen its roots in India.