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Apple Said to Seek Lower Taxes to Start Manufacturing in India
Taiwanese manufacturing company Wistron will be opening a facility in Peenya, Bengaluru’s industrial hub.
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Three years on, the Mac Pro is ripe for an upgrade with its chips and connector ports lagging rival products.
Apple said it was “very serious” about beginning assembly operations in April 2017 and thereafter full manufacture in India by the end of next year, the report added. This is Apple’s second announcement for Bengaluru this year.
Senior bureaucrats are scheduled to meet early next week to evaluate the incentives sought by iPhone maker Apple Inc to manufacture its products in the country.
A formal request to be exempted from that rule has been submitted by Apple to the Department of Revenue and Department of Electronics and Information Technology in India. But all-in-one computers in some plants are fully automated and you have to wonder if that includes Apple’s iMac.
In May, Apple opened a new development center in Hyderabad, which is focused on developing Maps for Apple products including the iPhone, iPad, Mac, and Apple watch. That’s one of the concessions Apple has looked for in expressing its intention to start manufacturing in India, one of the official said. The additional 12.5 pc duty levied on importing Apple products can be avoided if made in India and consequently the cost. The iPhone 7 and 7 Plus did good when they were launched this September, but many Apple fans were not really convinced with the idea of upgrading their handsets this year.
About 500,000 iPhones can be produced at the factory per day, and almost half of global iPhone production comes from this factory.
Trump has vaguely offered Apple incentives to bring manufacturing jobs back, and while Apple and Foxconn are considering the idea, there are many hurdles that are arguably impossible to overcome.
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The Indian government already provides financial incentives and subsidy to companies locally assembling smartphones. Making the phones in India would mean more sales.