Indian IT minister welcomes Apple proposal to build iPhone in Bengaluru, suggests producti...

Posted:
in General Discussion edited February 2017
Continuing the political shell game that is Apple manufacturing in India, a local IT minister issued a statement on Thursday welcoming the company's proposal to manufacture iPhone hardware in Bengaluru.




The Indian state of Karnataka officially welcomed "Apple Inc.'s proposal to commence initial manufacturing operations in the state" in a press release signed by regional IT minister Priyank Kharge, reports Times of India.

Apple's intent to manufacture in the area "will foster cutting edge technology ecosystem and supply chain development in the state, which are critical for India to compete globally," the release reads.

Further, Kharge says Apple executives involved with India's iPhone operations had "positive discussions" with Karnataka government officials about manufacturing initiatives and other future collaborations. VP of iPhone operations Priya Balasubramaniam, Senior Manager Government Affairs for Middle East and India Ali Khanafer, director of iPhone operations Dheeraj Chugh and country counsel Priyesh Povanna were present at the meeting, which Apple called "constructive."

Kharge punctuated today's message with a succinct tweet announcing "initial manufacturing operations" are set to begin in Karnataka's capital of Bengaluru.

Local media, which consistently hypes Apple's Indian activities, has taken the comments to mean the company's iPhone manufacturing plant is a done deal, but that might not be the case. Apple declined to confirm Kharge's statements to BuzzFeed News and instead offered an old boilerplate statement.

"We've been working hard to develop our operations in India and are proud to deliver the best products and services in the world to our customers here. We appreciate the constructive and open dialogue we've had with government about further expanding our local operations," Apple said. The same statement was issued to Reuters and other news outlets after last week's meeting.

Apple has long been rumored to manufacture iPhone in India, an asset that would allow the company to skirt onerous import/export regulations and potentially open the door to retail operations. In December, Apple partner Wistron was said to be prepping an iPhone facility in Peenya, an industrial center in the city of Bengaluru, with an expected go date in April.

Kharge in today's letter failed to offer a timeline to manufacture, but local reports claim production is expected to begin in June.

Comments

  • Reply 1 of 12
    Rayz2016Rayz2016 Posts: 4,556member
    I keep asking myself, how much is this worth in the end?
    watto_cobralostkiwi
  • Reply 2 of 12
    tmaytmay Posts: 3,568member
    Rayz2016 said:
    I keep asking myself, how much is this worth in the end?
    Considering the virtually untapped market for Apple Products in South Asia and the Middle East, likely a decent return on investment, which is certainly enough.
    edited February 2017
  • Reply 3 of 12
    Rayz2016 said:
    I keep asking myself, how much is this worth in the end?
    Um... what?

    Why do you keep asking yourself this? Do share with us what you know that Cook doesn't.
  • Reply 4 of 12
    A 'local' IT minister and his/her views amount to a hill of beans. Cook likely doesn't -- as he shouldn't -- even pay attention to this stuff. 

    Sort of like the "IT minister of California" making a statement that's then interpreted by the media as US policy shell games and shenanigans. 
  • Reply 5 of 12
    India always makes things needlessly complicated. :s
  • Reply 6 of 12
    maestro64maestro64 Posts: 4,485member

    Once Trump get wind of this, he will throw a kink in the works and tell India they need to buy American and stop forcing US companies to manufacture in their country. If they do not drop their demand he will stop all US companies from outsourcing to India,  especially have 1000 people who were recently arrested for running a fake IRS call center in India and scamming US citizen out of their money.

    India's government better watch it self Trump my turn his attention on them soon.

    To others point, I can not see this making more sales for Apple unless they plan to sell the phones for the same price as cheap Chinese android phone. Most Indians do not have the money, and ones that do are cheap, they will not spend more when they know they can get something for less. Most Indian's do not understand the value something has everything is equal and it just comes down to cost.

  • Reply 7 of 12
    maestro64 said:

    Once Trump get wind of this, he will throw a kink in the works and tell India they need to buy American and stop forcing US companies to manufacture in their country.

    This is more for sale within India herself and surrounding countries.

  • Reply 8 of 12
    maestro64maestro64 Posts: 4,485member
    maestro64 said:

    Once Trump get wind of this, he will throw a kink in the works and tell India they need to buy American and stop forcing US companies to manufacture in their country.

    This is more for sale within India herself and surrounding countries.


    it does not matter, this is what most countries do including China, if you want to sell within their boarders without getting a VAT put on your proud they make you manufacture in their boarders. This is why Apple has an Irish operation, it avoids the VAT in the EU, grant it Apple no longer manufactures in Ireland like they use to. In the US no company is hit with a VAT on their products by the federal government to sell in the US nor does the US force any company to manufacture in the US, the few that do, do it for supply chain and cost reasons.
  • Reply 9 of 12
    Some don't understand how precarious US based corporations foot print in China are. Apple especially is in that dilemma. India, Apple and the Trump Administration all have worthy reasons for an Apple supplier/manufacturing presence in India. 
    Mr. Trump will not put any wrench in this plan, but will see it as beneficial in further cementing India as a stable ally to the US in the global tumult gathering in Asia. And for Apple this second sourcing of the iPhone or components can't happen soon enough.
  • Reply 10 of 12
    SaneHumanSaneHuman Posts: 2unconfirmed, member
    india will be the downfall of Apple. Wrong decision to produce in India. Apple is becoming more like a shoe company.
  • Reply 11 of 12
    gatorguygatorguy Posts: 20,301member
    SaneHuman said:
    india will be the downfall of Apple. Wrong decision to produce in India. Apple is becoming more like a shoe company.
    I don't think Apple would have chosen to build iPhones in India if there was another way for them make a dent in their market. They certainly have tried to avoid manufacturing there until quite recently, but now they're just trying to reduce the costs of doing it.

    My guess if they're really hoping to make it a dumping ground so to speak for millions of used and refurbished iPhones at a price the average citizen would accept. Selling some new flagship models in an Indian Apple Store would be icing but IMO not where they expect to see the most immediate success. 
  • Reply 12 of 12
    foggyhillfoggyhill Posts: 4,767member
    Some don't understand how precarious US based corporations foot print in China are. Apple especially is in that dilemma. India, Apple and the Trump Administration all have worthy reasons for an Apple supplier/manufacturing presence in India. 
    Mr. Trump will not put any wrench in this plan, but will see it as beneficial in further cementing India as a stable ally to the US in the global tumult gathering in Asia. And for Apple this second sourcing of the iPhone or components can't happen soon enough.
    Trump will frack everything up, like he's done his whole life. He sued a guy who claimed he had 100M and lost in court...
    That's a lot less accounting with inflation than what his father gave him when he died.
    Have you seen his moronic tweets today. I won't call this dumbass Mr. ever!
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