15 March 2018 06:40:34 IST

Apple to make iPhones in Bengaluru

The phones would be manufactured by Wistron, a Taiwanese OEM maker for Apple

Apple is all set to start manufacturing iPhones in India at Bengaluru, as part of efforts to cash in on the world’s second largest smartphone market. Local manufacturing is expected to help Apple price its phones more competitively in India, as it currently attracts 12.5 per cent additional duty on imports.

The phones would be manufactured by Wistron, a Taiwanese OEM maker for Apple, top government sources say. “Wistron has plans for setting up iPhone manufacturing plant for domestic market in Peenya,” the sources added.

Another senior government official said Bengaluru has the talent required for quality high technology products, which was why the city was selected. The official also added that Foxconn, which also manufactures iPhones for Apple, had come up with similar plans for the city some time back.

This would be Apple’s second big project for Bengaluru. In May, Apple had announced setting up a design and development accelerator in the City to grow the iOS developer community. The announcement was made as part of Apple CEO Tim Cook’s visit to India.

The Cupertino-based company has been in discussions with Indian government seeking incentives to set up a manufacturing unit in the country. Early next month, a group of senior officials from ministries, including commerce and finance, will deliberate on the incentives sought by the company.

It had asked for several tax and other incentives to enter India in the manufacturing sector. Apple is also keen on setting up retail presence in India and has sought relaxation in local sourcing norms.