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Apple is planning to begin the assembling of its iPhone in Bangalore, India by April, under its arrangement with Wistron based in Taiwan.
This move by Apple comes even though it is awaiting the approval of the federal government on some proposals submitted for the lowering of duties on imports for components and for the creation of an ecosystem of manufacturers that can supply smartphone components.
Bangalore is the Karnataka state capital. The state announced the intentions of Apple to make its iPhone in Bangalore.
The information technology minister from Karnataka confirmed that Apple was cleared to make its phone in the city and said it was a much needed validation of the industry friendly policies the state has.
Having a world leader in technology making products in Karnataka could spin off more benefits related to work and app development in the artificial intelligence area by the highly skilled workforce that lives in the area.
Apple last year made the announcement that it would have a facility located in Bangalore that would assist developers to help improve app design around the iOS platform.
The company did not receive any incentives of special note from the state to assemble its iPhones in the state, said an official from the state government.
No comment was made by Apple related to its facility. The company has planned to make iPhones in India along with setting up its standalone retail locations in the country as a way to address the booming market across India.
Apple is expected to have much higher demand for its devices due to 4G networks being rolled out. Sales of iPhones were 50% higher in India during fiscal 2016 compared to the year before.
Lowering the price through local assembly is a critical element for Apple, as the smartphone market has become very price sensitive.
During the third quarter, rival Samsung followed by brands from China and India such as Lenovo and Micromax, were the leaders in the smartphone market in India.
That is in large part due to them having the capacity to deliver products at different price points.
Apple has attempted to receive from the federal government in India the approval to import its refurbished phones that it would sell at prices that are much lower than a new iPhone.
That proposal ran into much criticism from parts of the government because of the consequences to the environment of importing end of life products.