Apple Inc, one of the World’s largest technology company, is planning to open factories in India to manufacture its smart devices in India. The Cupertino headquartered tech titan already manufactures iPads and iPhones in India through its contract manufacturer Foxconn.
Apple to Manufacture in India, Wants more Incentives & Benefits
Apple has started discussions with the Government of India about the plans it currently has with respect to beginning manufacturing in the Indian sub continent. The Company which manufactures iPhones, iPads, Smart Watches, laptops, TVs and desktops has had its eyes on the Indian market for a long time now.
It has just 5 % – 6 % of the Indian Smart Phone market. India is that fastest growing smart phone market of the World. India is poised to become the second biggest smart phone market after China by displacing the United States from the second spot. China may be the largest smart phone market, but India is a much more important market as China’s rate of market growth has gone down.
The market is currently dominated by South Korean consumer durable electronics major Samsung and Indian mobile phone manufacturer Micromax. Apple will have to eat into the market shares of these two companies to gain any market share. Analysts believe that Apple will have to invest and set up a major manufacturing unit to let it have a steady flow of manufactured products to fill its own retail stores. This will surely help Apple to get a strong foothold in the important Asian market.
Apple wants to replicate the success it got in China. It wants the Government of India and other State Governments to give it lots of tax breaks, incentives and other benefits. Prime Minister Narendra Modi wants to build a big manufacturing hub in India and has launched the Make in India initiative for the same.