Technology

Is Apple Expanding Its iPhone Facilities In India?

Apple is arguably the most dominant force in the technology market, especially since gaining a stranglehold on the smartphone market. With 2018 fast approaching, Apple is expanding its operations anticipating increased sales, so it is important for the company to have the resources to support the increasing demand for its products.

iPhone assembly plant in India
JESHOOTS / Pixabay

Bloomberg reported recently about Apple’s main iPhone assembler in India is seeking additional land to expand their facilities. This is unsurprising, and has been perceived as Apple’s attempt to grow their operations in India. The move will enhance the manufacturing process considerably, especially regarding increased productivity and output.

Wistron, Apple’s design manufacturer in India, are currently touring the city to discover the most suitable plot of land to expand too, and have shortlisted several areas of around 100 acres. One of these is located close to the airport, and the manufacturer may diversify their operations and supply other brands. Much of this is up for speculation, where Wistron themselves have yet to comment on their developments.

The iPhone assembly plant in India started making the iPhone SE in India during May this year, and around this time Apple were seeking exemptions from the government to set up units in India for iPhone assembly. Apple’s biggest initiative for setting up an iPhone assembly plant in India, is labor costs and intensity. Apple was left wondering whether India would give them permission to set up there, and the company continued to converse with government officials requesting various tax and policy changes, which would free up an iPhone assembly infrastructure in the country.

Recent news suggests Apple may have been successful, great news during a time when India succeeded as the second largest smartphone market in the world. Apple has struggled to make a dent in India, mostly because their handsets are so expensive compared to Oppo and Xiaomi. Also, the government levies significant tariffs on devices manufactured outside the country, one of the biggest motivational factors for Apple to assemble handsets in a new iPhone assembly plant in India.

Apple is definitely moving in the right direction in India, where reports suggest the company has been building significant momentum, with revenue doubling this year. They do however have significant ground to gain, as is acknowledged by Tim Cook, and the process starts with building an iPhone assembly plant in India. From here, they can build more stores, channels, and ultimately markets, but first they have to cultivate a developer ecosystem. Apple is making good progress, and recent news suggests they are making great progress on route to becoming a more influential presence in India. Apple is gaining an understanding of the market, and with their promotional power and negotiation success with government officials, Apple is one step closer to achieving their goals.

I hope you have found this article useful, and appreciate news that Apple is set to become an even more resounding global mega-power. Developments are certain to continue, so be sure to research online to keep up to date with all the latest news. Thank you for reading this article, and if you’d like to contribute to the conversation, or have any questions, please comment below to kick-start the discussion.