Apple is reportedly ready to begin manufacturing its products in India and has apparently finalized tax and tariff exemptions, The Wall Street Journal said on Wednesday. An official speaking with the news outlet said it’s a “done deal.” Apple hasn’t officially announced any plans but that suggests that we’ll hear something very shortly.
Apple and India had reportedly tried to settle at least one major request from Apple – the ability to import goods into India, including “components and equipment,” without having to pay taxes on those imports for 15 years. By doing so, Apple will decrease its cost of entry right into one of its major markets. It’ll essentially build the products right in India and turn around and sell them, helping it compete with low-cost Android smartphones in a market that would otherwise be much more expensive to enter.
Apple to manufacture in the U.S., too?
Apple may learn a bit from its negotiations with India. The new Trump administration wants Apple to manufacture products here in the United States, too, and Foxconn is reportedly interested in making a massive investment in a Pennsylvania manufacturing facility that could create as many as 50,000 new jobs. Manufacturing in the U.S. is expensive, however, so tax breaks are going to be a big topic here at home, too.
Apple hasn’t said what it plans to build in India, but it would make a lot of sense to open an iPhone manufacturing facility there. The company has only confirmed that it’s “working hard to develop operations in India.”