Apple’s market share in India has been stuck at a paltry 2 percent, and this is where local manufacturing would come into the picture. Apple products attract heavy import duties, and as a result of which, they are unable to compete with the premium brands directly. That said, the Cupertino company has been trying to push sales by introducing easy finance options and also a buyback scheme. They also tried to talk the government into allowing them to sell refurbished iPhones so that the base price of the offering would come down. After several attempts, Apple finally got a nod from the government, allowing them to set up retail stores in the country, thus getting exempted from the 30 percent local sourcing requirements. Neither the government officials nor Apple executives have issued statements regarding the manufacturing plans. Currently, Apple has commissioned its iPhone manufacturing to Foxconn, which uses its production facilities in Shenzhen, South Korea, and Singapore to manufacture and assemble the iPhone. Also, Foxconn already has an operational plant in southern India and has earlier revealed its plans to start with yet another manufacturing facility in Mumbai, India. India is currently the second-largest mobile phone market in the World, and it is obvious that Apple wants a share of this emerging market. In all likelihood, not only the local manufacturing will give Apple a free hand with the policies, but it will also bring down the product pricing, something that could go a long way in bolstering Apple’s India prospect. Perhaps this move will also help Apple increase its global smartphone sale, which is currently pegged at a staggering 20 percent.
