Apple to build iPhone production facility in Bangalore: Report

Apple's Taiwanese contract manufacturer Wistron is close to finalizing a land deal in Bangalore, and it may invest $157 million to develop the site, according to a report from Reuters. With the new production facility, Apple aims to expand capacity and assemble more of Apple's products in India, including the iPhone 6S.

As per the report, Some of Wistron’s global executives and its India's head met with the industries minister of Karnataka earlier this month, and a deal on the land lease may be struck in a few weeks.

The report cites an unnamed source saying that Apple is “likely to start assembling its iPhone 6S models in India via Wistron soon, as it looks to cut costs and diversify its production base beyond greater China”. The report cites another source as saying, “The assembly of iPhone SE in India was a pilot to test waters, and it is only logical the line would be expanded.”

The primary reason why Apple is looking for a production facility is that of the government's decision to hike import duties. Last month, the Indian government raised import duties on a range of products from 10 percent to 15 percent. A few days later, Apple announced a price hike of around 3.5 percent across its entire portfolio. Only the prices for Made-in-India iPhone SE remain untouched.