The Leading smartphone & tech company Apple Inc has rolled up sleeves for its first manufacturing project in India situated at Banglore in the sate of Karnataka. The Government of Karnataka has welcomed Apple’s proposal for initial manufacturing operation in the city.

IT Minister Priyank Kharge of Karnataka state said “Apple’s intentions to manufacture in Bengaluru will foster cutting edge technology ecosystem and supply chain development in the state, which is critical for India to compete globally,”

With this move, India will be the third country where iPhone will be assembled after China & Brazil. Although the date of manufacturing launch has not been disclosed. But it might start manufacturing the i products in June 2017 itself. India is one of the fastest growing smartphone markets which is currently led by  The South Korean company Samsung Electronics with 25.1% market share. Other smartphone maker companies like Xiaomi, Lenovo, Micromax & Gionee etc are also in the cutthroat competition with a big share of the market.

“In the longer term, it’s a great move,” Cook said on this week’s post-earnings call. “We are in discussions on a number of things, including retail stores, and fully intend to invest significantly in the country.”

Apple is known for its quality products starting from iPhone to Macbook. All Apple products pass its quality test. Apple Inc’s founder Mr. Steve Jobs always focused on the quality of the product. That is how Apple is loved by its customers even after the premium pricing.

Making iPhones in India will also support Mr Narendra Modi’s (Prime Minister of India)  initiative “Make In India” which is in favor of Nation in order to create new jobs and infrastructure. The Chinese giant smartphone maker Xiaomi has already joined the hands with Make in India project and established its first plant in the Hyderabad state of India.

Apple Inc has already shipped 2.5 million in the country in 2016 with the huge contribution in its profit of financial year. The company’s manufacturing partner Wistron will make the iPhones in a new plant, reportedly beginning with the iPhone 8. Apple plans to manufacture iPhones in India will bring some brownie points to the company. However, Cook’s attempts to enter the aggressive Indian market have been seeing hindrances by the company’s demands of a 15-year tax holiday on imports of components and equipment.

While the Indian government has agreed to the manufacturing unit in the country, no incentives have yet been finalized.

Apple enjoys a significant market share in high-end smartphones and with more affordable phones it has the opportunity to improve its numbers in the mid-segment where Chinese entrants are making a killing these days. Also, don’t be surprised if Apple also kicks off tie-ups with local service providers to lower the price of ownerships with annual contracts like in the US.

In my frank opinion, apple should come up with very aggressive pricing to capture Indian smartphone Market.


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