Ap­ple’s plans for man­u­fac­tur­ing in In­dia

Ex­ec­u­tives put the case be­fore of­fi­cials. John Ribeiro re­ports

iPad&iPhone user - - CONTENTS -

Ap­ple’s plans to man­u­fac­ture in In­dia made head­way as ex­ec­u­tives of the com­pany pre­sented de­tailed plans to the coun­try’s fed­eral gov­ern­ment.

It may be some time though, be­fore Ap­ple gets per­mis­sion for its pro­posal to man­u­fac­ture in In­dia as it re­port­edly in­volves a re­quest for deep cuts

in the im­port du­ties for com­po­nents. The meet­ing is said to have ended in­con­clu­sively, ac­cord­ing to sources close to the sit­u­a­tion.

“We’ve been work­ing hard to de­velop our op­er­a­tions in In­dia and are proud to de­liver the best prod­ucts and ser­vices in the world to our cus­tomers here,” Ap­ple said in a state­ment after the meet­ing. “We ap­pre­ci­ate the con­struc­tive and open di­a­logue we’ve had with gov­ern­ment about fur­ther ex­pand­ing our lo­cal op­er­a­tions.”

In­dia is now one of Ap­ple’s fastest grow­ing mar­kets, with iPhone sales up over 50 per­cent in fis­cal 2016 com­pared to the pre­vi­ous year. The high growth comes largely from a small user base of its prod­ucts in the coun­try, but with re­cent roll­outs of 4G net­works, the com­pany ex­pects more de­mand for its de­vices.

Sam­sung Elec­tron­ics, fol­lowed by Chi­nese and In­dian brands Len­ovo and Mi­cro­max, led the In­dian smart­phone mar­ket in the third quar­ter largely be­cause they are able to de­liver their prod­ucts at var­i­ous price points, ac­cord­ing to IDC.

Ap­ple has pre­vi­ously pro­posed to In­dia that it would like to im­port re­fur­bished phones to sell at a low cost to In­dia’s price-sen­si­tive con­sumers. That pro­posal was shot down by some sec­tions of gov­ern­ment be­cause there were con­cerns that it could in­volve end-of-life prod­ucts, lead­ing to e-waste dis­posal is­sues.

Set­ting up man­u­fac­tur­ing in In­dia will also help Ap­ple’s bid to set up wholly owned re­tail stores in the coun­try. Un­der In­dian rules, for­eign-owned, sin­gle-brand re­tail­ers have to source 30 per­cent of their prod­ucts lo­cally.

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