China Daily Global Edition (USA)
Move: Apple’s hopes for big concessions ‘outside the trend’
other suppliers including Hon Hai later, depending on demand, the person said.
Apple and India’s officials have met several times amid a prolific exchange of correspondence, but next week’s meeting will be crucial. If the government gives in to Apple’s demands, it may have to offer similar incentives to other global brands, such as Samsung Electronics Co and Xiaomi Corp.
“Historically, the government has given no such concessions to any other company and there is no room in the policy to do so,” said Anshul Gupta, the Mumbai-based research director at Gartner Inc. “What Apple is asking for is outside the trend so it will be interesting to see how the government looks at it.”
India isn’t the only country pressing Apple for local manufacturing. During his election campaign last year, US President Donald Trump said he wants to see iPhones made in Apple’s home market, part of a broader push to get companies to keep or create manufacturing jobs.
HonHai has said that it is in preliminary discussions to broaden its investment in the US.
Prime Minister Modi wants companies to make products in the country as part of his “Make in India” policy, aimed at reaping the benefits that come from manufacturing facilities and jobs. His administration doesn’t want technology companies to sell products and take advantage of its vast consumer base without making their own capital investments.
Despite its global success, Apple is a minor player in India, largely because its phones are too expensive for local consumers. Apple holds about 2 percent of the market in a country where about 500 million smartphones are expected to be sold in the next fewyears.
share of Apple Inc in India’s smartphone market: about 500 million handsets will be sold in the next few years.