Published: Sun, January 01, 2017
Technology | By Ramiro Moody

Apple may start manufacturing iPhones in Bangalore from April 2017


There have been rumours about Apple planning to manufacture iPhones in India.

Apple CEO Tim Cook's visit to India earlier this year had signalled the growing importance of India.

Apple has sought tax incentives and relief from product labeling law from the Indian government to enter into local manufacturing of its iconic iphones. However, the need to source a certain percentage of raw material locally had become an obstacle for the same, as India does not have a robust component supply chain like in China.

The New York Times brought up fresh arguments on Thursday, noting again that some major USA tech giants, including Apple, are very dependent on Chinese manufacturing.

Apple is reportedly planning to manufacture iPhones for Indian consumers in the Silicon Valley of the country, Bengaluru.

Apple could move a significant percentage of its iPhone production to the us according to rumors and President-elect Donald Trump's claims.

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"Apple has had difficulty creating appealing new features, stifling demand from customers who otherwise would look to upgrade to the latest device", the outlet noted.

Sources told The Times of India that Apple is very serious about starting assembly operations before leaping to full manufacturing by the end of next year. However, the contract manufacturer will not remain exclusive to Apple as it also manufactures smartphones by Xiaomi and OnePlus.

Earlier in May, Apple had announced a design and development accelerator in the city for iOS developers to leverage their skills and build apps for Apple TV and Apple Watch.

Apple shares were down 0.8% in Friday trading, to $115.78.

Hollis Johnson/Business InsiderApple will trim production of iPhones by about 10% in the January-March quarter, Nikkei reported, citing calculations based on data from suppliers. The article notes that the smartphone company tried to learn from those mistakes by cutting production of the 7 and 7 Plus by 20% at the outset, but the phones still haven't been flying off shelves. The company's net profit grew 21% to Rs 294 crore during the same period with deeper retail penetration and lower prices for older iPhone models that garnered a huge user base.

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