Apple is looking to ramp up its investment in India, according to a new report today. The Times of India reports that Apple will invest $1 billion in India through its “partners” as it looks to expand manufacturing beyond China.
Last month, a report from Bloomberg said that Apple was planning to expand in India after the country eased rules on foreign companies looking to establish a retail presence. Apple confirmed its plans, but cautioned that it will take “some time” before it is able opens the first official Apple Store in the country.
Today’s report cites that an “official source” and says that “Apple will be investing $1 billion in India through its partners.” Foxconn is said to be an “investment partner” in the deal as Apple looks to start exporting its “Made in India” products to other countries. “They have said the production will be used for meeting the demand for its products across global markets,” the report says.
Other than Foxconn, a “host” of other suppliers will be part of the $1 billion investment:
Initially, products made in India were reserved for local sales, but Apple started exporting to other countries in July. It now seems that Apple plans to further expand those efforts, and is seeking “clarity” from the Indian government on what sort of incentives it could receive for exports.
Whether it be for export or local sale, Apple has a major incentive to locally manufacture in India. Doing so can help it avoid 20 percent import duties, as well as make it eligible for export incentives.
The expansion also comes as Apple looks to diversify its supply chain beyond China. In June, Nikkei reported that Apple was in the early stages of restructuring supply chain operations with an eye to move 15-30 percent of production outside of China over the next few years.
Read more:
- iPhones made in India now being exported to European markets, not simply sold domestically
- Foxconn has big plans for making more iPhones in India, but faces challenges
- Apple tapping into massive India market with first online sales as country eases rules for foreign companies
- Apple says first retail store in India ‘will take us some time’
Thanks, Amit!