Apple @ India

Apple’s Second Phase of iPhone Manufacturing in India Delayed by Pending Government Approvals

iPhone manufacturing India

Apple has been eager to ramp up its presence in India both in retail as well as in manufacturing for a while now. In fact in the Q3 earnings call, CEO Tim Cook mainly emphasised on being “very bullish” about the Indian market.

In the following interviews with the press, he even mentioned that the company is all set to build localised features on iOS and was also ardent on the idea of scaling up its ‘make in India’ operations. However, the tech giant seems to be stuck in a rut with its ambitions in India subject to government approvals that have been pending for a long time now.

Previously in this month, Apple had requested the government for tax breaks for its suppliers so that it can fully get started with making products in India, instead of just assembling iPhone here. Nevertheless, the requests haven’t yet yielded any results, and Apple is unlikely to proceed anytime soon.

“Else, it doesn’t make sense for Apple to import components by paying heavy duties from other parts of the world to assemble and sell here,” reported the e-paper Mint.

To this the government officials are still saying the same thing there were a few months back – India will have to formulate new policies applicable to not just Apple but other device makers if the tech giant’s requests are to be met. This limbo at the ministry level is currently threatening a significant delay in Apple’s second-phase of manufacturing plans in India.

India was a crucial market for the iPhone maker after its sales hit an all-time-low in China. And quite successfully their sales have radically increased in the country since the past couple of years after they put in efforts to blend into the domestic market. However, their market share in India is still at 3% due to a comparatively higher price range, and if they can begin manufacturing in India they could decrease their costs. It could also source the components locally, thereby avoiding import duties and other taxes. If only the government speeds up its processes.

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