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| Apple to start making iPhones in India, says state government | Apple to start making iPhones in India, says state government |
| (about 1 hour later) | |
| Apple is to start making iPhones in the southern Indian state of Karnataka, the state's government has said. | Apple is to start making iPhones in the southern Indian state of Karnataka, the state's government has said. |
| It said it welcomed a proposal from the tech giant to begin initial manufacturing operations in the state, whose capital is the tech hub Bangalore. | It said it welcomed a proposal from the tech giant to begin initial manufacturing operations in the state, whose capital is the tech hub Bangalore. |
| Apple has 2% of India's mobile phone market, well behind rival Samsung. | Apple has 2% of India's mobile phone market, well behind rival Samsung. |
| However, although Apple said this week it is keen to "invest significantly" in India, it has not confirmed any plans. | However, although Apple said this week it is keen to "invest significantly" in India, it has not confirmed any plans. |
| Despite the low percentage of sales, Apple has almost half of the market for premium phones, which start at around $450 an item, and its sales are growing fast. | Despite the low percentage of sales, Apple has almost half of the market for premium phones, which start at around $450 an item, and its sales are growing fast. |
| Apple has held a series of meetings with government representatives at both state and national level and is understood to be pressing for concessions before going ahead with such a move. | Apple has held a series of meetings with government representatives at both state and national level and is understood to be pressing for concessions before going ahead with such a move. |
| Priyank Kharge, minister of information technology and biotechnology in Karnataka, told the AFP news agency: "We have an understanding with Apple and we expect them to start manufacturing in Karnataka by the end of April." | Priyank Kharge, minister of information technology and biotechnology in Karnataka, told the AFP news agency: "We have an understanding with Apple and we expect them to start manufacturing in Karnataka by the end of April." |
| Reports said the plant is being set up by Taiwanese manufacturing company Wistron Corp. | Reports said the plant is being set up by Taiwanese manufacturing company Wistron Corp. |
| Apple's biggest manufacturing partner is Taiwanese giant Foxconn, which runs the biggest iPhone factory in the world in China. | Apple's biggest manufacturing partner is Taiwanese giant Foxconn, which runs the biggest iPhone factory in the world in China. |
| Rising sales | Rising sales |
| Apple is currently unable to set up its own branded stores in India, which has a raft of rules to curb the activities of foreign companies. | Apple is currently unable to set up its own branded stores in India, which has a raft of rules to curb the activities of foreign companies. |
| For it to be able to sell direct to customers in India, Apple would have to source 30% of the components of its products locally. | For it to be able to sell direct to customers in India, Apple would have to source 30% of the components of its products locally. |
| Earlier this week, Apple reported its first rise in sales in nine months after strong Christmas sales of the iPhone 7. | Earlier this week, Apple reported its first rise in sales in nine months after strong Christmas sales of the iPhone 7. |
| The firm had suffered three quarters in a row of falling revenues as mounting competition, particularly from Chinese rivals, hit sales of the iPhone. | The firm had suffered three quarters in a row of falling revenues as mounting competition, particularly from Chinese rivals, hit sales of the iPhone. |
| Analysis: Shilpa Kannan, India business reporter, Delhi | |
| Indian media has been speculating about Apple for a while now. The iPhone is much coveted as a status symbol in the country but it's very expensive for most people. | |
| They range from $194 for a 16GB version to the top end iPhone 7Plus which costs about $1,164. | |
| This, when the bulk of the smartphones sold in India is around $100-120. But the hope is that manufacturing locally will bring iPhone prices down. | |
| I spoke to Karnataka's information technology minister - Priyank Kharge who said there was a fierce competition among Indian states to woo Apple's manufacturing facilities. | |
| He confirmed that Apple has expressed an intention to make phones in his state, and said it would start by assembling the phones and then, hopefully, move on to manufacturing. | |
| By getting Apple to start making phones there, he hopes to attract more high end manufacturing firms to move to Bangalore. |