Proudly showcasing the Apple iPhones manufactured in the country, Indian telecom minister Ravishankar Prasad on Monday said Apple has started marketing Indian-manufactured handsets int he country. iPhones which are made in India will also be exported.
“Apple has started production of the iPhone XR in India for the domestic market and export,” said Prasad, adding that India will export $1.6 billion worth of mobile phones and components this year.
The minister added that Salcomp, a major supplier to Apple, will take over the shuttered Nokia unit in the special economic zone in Chennai. The unit was closed about 10 years ago and Salcomp, which manufacturers chargers and other components for the iPhone, is likely to revive it by March 2020.
“iPhone maker's supplier Salcomp would make components at a plant near Chennai. Salcomp will invest $281.6 million over the next five years to make chargers and other components at the plant. This will create 10,000 jobs,” Prasad said. Salcomp will also export 70% of all products manufactured at the Chennai facility.
Apple's decision to turn to India for manufacturing comes as the US and China are engaged in a trade war. The ongoing contest has led technology players dependent on China for production to look for potential alternative markets.
By manufacturing in India, Apple would be able to save on the 20 percent smartphone import duties and reduce prices of the otherwise expensive Apple handsets for Indian consumers.
