Apple Explores Manufacturing iPhones in India Starting April

According to a report by CNNMoney, Apple is rumored to be contemplating the production of iPhones in Bangalore, a bustling city in southern India. Allegedly, Apple executives have engaged with Indian government officials concerning this strategic shift, though neither party has confirmed these discussions yet.

The Times of India initially reported in December 2016 that Apple might execute such a move as early as April 2017. The driving factor behind this initiative is the Narendra Modi-led government’s aggressive push of the “Make in India” campaign, which aims to attract corporations to establish manufacturing units in India. Given the current circumstances, it seems this bold initiative might be bearing fruit, especially if Apple’s manufacturing plans in Bangalore see the light of day.

In a bid to tap into a market with a staggering 300 million smartphone users, Apple proposed to establish retail outlets in India last year. With India currently boasting more Android devices than the United States and nearly matching the combined smartphone usage of Africa, it’s undoubtedly a significant market for smartphone manufacturers like Samsung, Apple’s fierce competitor.

The Indian Government’s regulations have positioned the country as a more welcoming business environment for Western tech firms, compared to China. Dating back to this more friendly observation, India has implemented a policy that insists companies must locally source 30 percent of their raw materials—a similar policy that decorates major economies like Nigeria, especially in its oil sector.

Furthermore, with India’s population projected to overtake China’s by 2022, global economic trends will concentrate more on this ever-growing market. Apple has crucial reasons to seize the opportunities presented by India’s robust economic growth. Faced with a decline in iPhone sales and consequently recording its first drop in quarterly growth in 13 years last year, Apple is keen to recharge its market penetration strategy.

However, Apple will face substantial challenges in India, where brands like Xiaomi, Lenovo, and Samsung have established a commanding presence. Moreover, given that the average Indian income is around $1,500, the majority of India’s 1.3 billion population might find the iPhone a luxury beyond their reach—paralleled to Africa, which has noted a considerable surge in Android device usage over time.

While we await confirmation on whether Apple will actualize its rumored Indian manufacturing venture, it’s clear that Apple might have an intriguing strategy to turn around its declining fortune.