“Apple Inc. is willing to start making iPhones in India, but it wants a big helping hand from Narendra Modi’s government first,” Saritha Rai reports for Bloomberg.
“The Cupertino, California-based company is scheduled to meet with officials in New Delhi next week to discuss the prospects for setting up manufacturing facilities in the country this year,” Rai reports. “Apple, the most valuable company on Earth, is asking for a long list of financial concessions from India, one of the poorest countries. Among the requests, the company is seeking a 15-year tax holiday on imports of components and equipment, according to a person with direct knowledge of the matter.”
“Chief Executive Officer Tim Cook visited the country for the first time in May as he sought government approval for Apple to open its own stores,” Rai reports. “India has insisted that Apple, like any single-brand retailer, source 30 percent of its components locally, though the country is relaxing those rules so technology companies can operate stores for three years before meeting that requirement.”
“Still, Apple wants more,” Rai reports. “The company has sent a list of requests ahead of its Jan. 25 meeting with officials from several government departments, including Electronics and Commerce, the person said, asking not to be named because the matter is private. Apple is also asking for a waiver on customs duties for new and used equipment brought into India. The Indian Express newspaper reported Apple wants full exemption from duties on raw materials, components and capital equipment.”
Read more in the full article here.
MacDailyNews Take: The benefits of having Apple manufacturing and retail outlets outweigh any and all of the requested incentives.
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