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.
Apple shipped 2.5 million iPhones in India during the whole of 2016 — a third of those in the fourth quarter, when the iPhone 7 launched in the country, according to Counterpoint research data released this week.
Apple's meeting with Indian government officials on Wednesday — aimed at setting up local iPhone manufacturing — was a "constructive and open dialogue," the company claimed in a statement.
The Indian government will probably reject Apple's requests for waiving taxes and duties on imports in exchange for setting up local manufacturing, reports claimed on Tuesday ahead of a Wednesday meeting between the company and government officials.
Ahead of a meeting on Jan. 25, Apple has sent out a list of concessions it wants from the Indian government before setting up local manufacturing — though it won't necessarily push to get them all, according to a report.
Shedding light on Apple's efforts to break into the burgeoning Indian smartphone market, a letter sent to Prime Minister Narendra Modi in October outlines the company's request to "make the environment attractive" for iPhone production and export.
The Indian government will adopt an "open mind" when examing Apple's demands before setting up local manufacturing in the country, the country's Information Technology Minister said on Wednesday.
An Apple team is reportedly scheduled to meet with senior Indian government officials on Jan. 25 in order to discuss demands for setting up manufacturing in the country, which could potentially pave the way for local Apple stores and more competitive pricing.
More information regarding Apple's possible entry into India's manufacturing and retail markets has emerged, with government officials making statements before a full ruling suggesting Apple would not receive any special tax incentives to do business in the country that wouldn't also apply to other companies.
Recent supply chain reports suggest that once and possibly future iPhone manufacturer Wistron is expanding its efforts in India, possibly as a way to help Apple fulfill local sourcing requirements for future iPhones.
Amid rumors that Apple is ramping up efforts to sell its wares in India, a report on Thursday claims the company is "very serious" about starting up iPhone production operations in the country by the end of 2017.
Apple continues to work with the Indian government to penetrate the growing mobile market, and is seeking relaxed product labelling laws, as well as tax benefits to start manufacturing the iPhone inside the country, which is now the second largest smartphone market in the world.
In recent weeks, senior officials from India's Trade Ministry have met with Apple to discuss prospects for setting up manufacturing in the country, a report said on Tuesday.
According to a report published Friday, Apple is looking to consolidate its logistics operations in India, and thus gain more control over regional sales channels, by establishing a centralized distribution center in the country.
Apple crushed Samsung in the emerging market for premium smartphones in India during October, taking a leading 66 percent share of sales. Samsung's second place accounted for 23 percent of sales from Galaxy S7 and similar phones, while Google—which has made the subcontinent a focus—took 10 percent of sales. Only 1 percent was attributed to other makers.
Apple is seeking financial handouts from the Indian government before setting up a manufacturing unit in the country, according to a new report.
The Indian government is reportedly buying rights to the same Cellebrite technology the FBI may have turned to when trying to unlock the iPhone of San Bernardino shooter Syed Rizwan Farook.
Once Apple's largest growth market, revenues from Greater China slid 30 percent during the fourth fiscal quarter of 2016, prompting the company to turn at least part of its focus toward prospects in India.
Apple has entered a direct partnership with Indian's biggest e-commerce storefront, Flipkart, in advance of the local iPhone 7 launch on Oct. 7, a report said on Friday.
India's government recently invited Apple, Google, Microsoft and Samsung to discuss embedding government-funded biometric technology into products sold within the country as part of an effort to register and authenticate its citizens. Apple did not attend.
{{ summary }}
Mikey Campbell
Roger Fingas
Mike Wuerthele
AppleInsider Staff
Daniel Eran Dilger
