Apple bets big on India market, prepares to invest $1 Bn in latest push

After years of being on the sideline and not being able to consolidate its foothold in the Indian smartphone market, iPhone maker Apple has begun making smartphones and components for exports in India.

As part of Apple's revived plan, the tech giant has committed fresh investment of $1 billion through its partners in the country.

Taiwan-based Foxconn will be one of the partners in Apple's fresh expansion plan. "Testing is underway for many products. Apple will aim to meet the demand for its products across global markets," said a TOI report quoting official sources.

In coming months, the company plans to kick off the export of 'Made in India' iPhones across the world.

Initially, the iPhone maker firm had begun with a limited production of a smartphone in India. It has been assembling iPhone SE and 6S in the country through Wistron unit.

Now, Apple reportedly will start manufacturing newer models like iPhone 8 in India. A few months ago, Wistron, to set up a new plant, had bought a 43-acre plot in Bengaluru.

Apple also eyes to serve the local demand for latest models like the costlier iPhone X, XS and XS Max from its plant in Sriperumbudur in Tamil Nadu.

Apple's operation development was confirmed by the Union minister for electronics and information technology Ravi Shankar Prasad.

"Apple is on board as far as India’s success story is concerned,” said Prasad, who wants the US-based tech giant to invest more in India.

The development comes after the government decision to relax in the statutory 30% local sourcing of components. Apple had earlier proposed concessions, including duty exemption on manufacturing and repair units, parts, capital equipment, and consumables for a period of 15 years.

In the last couple of years, Apple has witnessed a downfall in its market share in India. According to Counterpoint research data, It shipped 1.7 million iPhones in 2018, compared to 3.2 million in 2017.

Apple's market share has gone down to 1.2 per cent from 2.4 per cent.