Ap­ple set to ring in $1bn in­vest­ment

Plans In­dia Base To Meet Global De­mand, Starts Trial Pro­duc­tion With Fox­conn

The Times of India (New Delhi edition) - - Times Global - [email protected]

New Delhi: Ap­ple is set to com­mit fresh in­vest­ments, to the tune of $1bil­lion, in In­dia. The move comes as the com­pany plans to be­gin ex­port of ‘Made in In­dia’ iPhones across the world.

The move by the US elec­tron­ics gi­ant comes at a time when the US and China are en­gaged in a trade war, prompt­ing com­pa­nies which are heav­ily de­pen­dent on man­u­fac­tur­ing in China to look else­where for mak­ing their prod­ucts. “Ap­ple will be in­vest­ing $1 bil­lion in In­dia through its part­ners. They have said the pro­duc­tion will be used for meet­ing the de­mand for its prod­ucts across global mar­kets,” an of­fi­cial source told TOI.

Fox­conn, Tai­wan’s con­tract man­u­fac­tur­ing be­he­moth and the big­gest pro­duc­tion part­ner for Ap­ple glob­ally, will be in­vest­ment part­ner for the iPhone maker’s lat­est push. Its fac­tory in Chen­nai will be used to man­u­fac­ture prod­ucts for Ap­ple’s global mar­kets. Also, a host of com­po­nent sup­pli­ers to the com­pany will be mak­ing in­vest­ments in the re­gion for the lo­cal push.

Ap­ple had ini­tially be­gun lim­ited lo­cal pro­duc­tion of certain mod­els in In­dia through the Ban­ga­lore fac­tory of an­other man­u­fac­tur­ing part­ner — Wistron of Tai­wan — though the fresh ex­pan­sion is now be­ing un­der­taken by Fox­conn.

The source said “test­ing is un­der way” for the prod­ucts that have been made in In­dia, and added that “Ap­ple is also seek­ing clar­ity” on ex­port in­cen­tives that the govern­ment cur­rently of­fers.

Ap­ple did not com­ment

govern­ment is look­ing at a com­pre­hen­sive in­cen­tive pack­age

➤ worked out by var­i­ous wings of govern­ment, ➤ lo­cal man­u­fac­tur­ing will help Ap­ple avoid 20% duty

on the is­sue.

IT and elec­tron­ics min­is­ter Ravi Shankar Prasad said the govern­ment has also ex­horted the iPhone maker to ex­pand

com­pany feels it can price its de­vices more ag­gres­sively through lo­cal pro­duc­tion,

➤ man­u­fac­tur­ing base in In­dia, and use the coun­try as an ex­port hub. “Ap­ple has started man­u­fac­tur­ing iPhones in In­dia... mak­ing com­po­nents and are ex­port­ing as well... Ap­ple is on board as far as In­dia’s suc­cess story is con­cerned,” Prasad said af­ter a meet­ing with elec­tron­ics mak­ers.

Ap­ple hopes to gain a larger share in smart­phone sales through the lo­cal push, es­pe­cially if its de­vices get priced ag­gres­sively to ri­vals such as Korea’s Sam­sung and China’s OnePlus. Ap­ple also feels that higher pro­duc­tion in In­dia, in­clud­ing to­wards ex­ports, would help the com­pany meet the 30% lo­cal sourc­ing rule to open its own stores here. Ap­ple is un­der­stood to be work­ing on plans to set up three brick-and­mor­tar out­lets in In­dia, be­sides an on­line store. The com­pany is learnt to have con­veyed this to the govern­ment, and said that the stores — ex­pected to come up in Mum­bai and Delhi — would be in line with its ‘global ex­pe­ri­ence’ cen­tres.

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