Apple to make iPhones in Bengaluru

Apple is turning to Taiwan's Wistron, which will utilise PC-maker Acer's facility

The world's most valuable company Apple is looking at Bengaluru to set up an iPhone manufacturing plant, as it looks to replicate its China success in the fastest growing smartphone market in the world.

Apple is turning to Taiwanese contract manufacturer Wistron, which will utilise PC-maker Acer's facility, a top government source confirmed. Wistron was spun off as a separate legal entity from Acer in 2002, focusing on the original device manufacturer market.

"They have taken an Acer facility here. The initial plan is to make iPhones for the domestic market and then we can look at exports," said a government official, who did not want to be named. "The domestic manufacturing policy is clear.. they will be entitled for all incentives under that," the official added.

Wistron has, in the past, won contracts to build Apple's affordable iPhone 5c and iPhone SE models. According to a recent report in Chinese publication Economic Daily News, Wistron would be the third assembler of iPhones for upcoming models, joining Pegatron and Foxconn.

Wistron's board approved the proposal for the Bengaluru unit early this week and it would take around four months to begin production, another official said.

Foxconn, another Taiwanese firm, is also looking at setting up factories for Apple in India, but has not firmed up any plans.

Apple has been stepping up its efforts to grow its business in India, exploring local manufacturing as a way to lower the cost of its devices and open brand-owned stores. Earlier this year, the Department of Industrial Policy and Procurement had relaxed local sourcing norms for Apple to open its stores in the country.

India has emerged as one among the fastest growing markets for Apple's iPhone in the world, with sales growth crossing 50 per cent in the 12 months that ended September. While the base is still tiny, at around 3 million units per annum or just 2-3 per cent of the market, Apple is already the second largest smartphone maker in India in terms of revenue.