Apple to begin ‘trial assembly’ of iPhones in Bengaluru next month: report

Apple is preparing for a ‘trial assembly’ run of iPhones in Bengaluru from next month regardless of the Finance Ministry response on Apple’s demand on tax exemption for setting up a manufacturing unit in the country, according to The Economic Times.

Apple had sought concessions such as duty exemption on manufacturing and repair units, components, capital equipment for smartphones for 15 years, the Minister of State for Electronics and IT, PP Chaudhary, wrote to Lok Sabha this month.

These demands were “examined in the Department of Revenue and have not been accepted,” he told PTI earlier this month. But a state official in Karnataka has recently confirmed ET, the Cupertino-based giant will start assembling the iPhones at its unit in Bengaluru from next month “regardless of the outcome of its requests for certain concessions from the central government.”

The official cited in ET’s report, expects Apple will pursue its requests with the Centre independent of its Bengaluru plans “because India is a market it can ill-afford to ignore at this point.”

The phones would be manufactured by Wistron, a Taiwanese OEM maker for Apple, according to top government sources.

Apple’s move comes as it seeks to boost its share in the world’s fastest growing major mobile market, where handsets far cheaper than Apple’s iPhones dominate. It also comes as smartphone sales growth is slowing in Asia’s other massive market, China.