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Apple selects Bengaluru to set up its manufacturing base in India

Apple selects Bengaluru to set up its manufacturing base in India

The announcement will not be welcome news for a Trump administration that had named Apple among the companies it would push to bring its manufacturing operations back to the US.

Apple's original component maker - Taiwan-based Wistron Corp - will manufacture its flagship smartphone in India.

Apple Inc., has not made any official application with Karnataka because it is known to work through a third party manufacturer.

Apple's intentions to make iPhones in Bengaluru will foster cutting-edge technology ecosystem & supply chain development in the state.

Apple has been looking to bolster its presence in India for some time now, with company executives engaging the government at the highest levels.

The start of iPhone assembly in India comes after months of speculation on Apple's plan for the market, which is led by rival Samsung Electronics Co.

It seems like Apple has come to an agreement with the government of Indian state, Karnataka, to set up a manufacturing plant in Bangalore, aka Bengaluru. That's a small fraction of the 231 million iPhones Apple sold in the company's fiscal 2016.

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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. Although, no timeline has been finalized yet about it. Production is expected to start in April this year. This was seen as a prelude to Apple making iPhones in India.

Commerce and Industry Minister Nirmala Sitharaman had said the government was yet to take a view on Apple's demands. This is in order to let the company establish an iPhone production facility in India, although it is not clear if Apple has been granted this by the government of India.

"In the longer term, it's a great move".

Apple had earlier requested the government to exempt it from adhering to the domestic sourcing norm of 30 per cent, which is a condition for investments in single brand retail.

"I feel really good about how we're doing [in India]", Apple CEO Tim Cook said on an earnings call this week after reporting record revenues for the country.

Apple is now unable to set up its own branded stores in India, which has a raft of rules to curb the activities of foreign companies.

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