Apple changes tack: OEMs now bid to secure sops for iPhones in India

After failing to secure sops for retailing and manufacturing its products in India over the past two years, US-based tech giant Apple has decided that further discussions with the government on the issue would be left to Taiwanese original equipment manufacturers (OEMs) such as Wistron and Foxcon.

Apple had been lobbying for special incentives from the government and was seeking relaxation on local sourcing norms for a while, without much success. The company, according to senior industry department officials, however, has now changed its strategy, with one of its key OEM, Wistron, receiving a nod from the electronics and information technology ministry for its Rs 5,000-crore investment plan. Further, Foxconn — the largest OEM for Apple in China — has also submitted a proposal to invest Rs 2,500 to ramp up its manufacturing capacity in India.

Wistron is already assembling two of the older iPhone models — iPhone SE and 6S — in India. Once the new investment comes in, Apple is expected to source newer models like the iPhone 8 series locally. Wistron has already secured a 43-acre plot near Bengaluru to set up a new plant for the purpose.