Apple CEO Tim Cook says ‘excited to build on long-standing history’ in India ahead retail store openings

Cook is expected to be in India to inaugurate the stores. As part of his plans to deepen iPhone manufacturing in India, he might also meet key policymakers, including Prime Minister Narendra Modi.

Ahead of the visit, the government is believed to be favourably considering an industry demand to reduce the basic Customs duty on high-end phones and import duty on mobile phone components. ​

CNBC-TV18 has learnt from sources that India is considering reducing basic Customs duty on high-end phones from 20 percent currently and slashing import duties on more components to encourage domestic manufacturing. The move could help high-end mobile phone makers like Apple.

The company said in its statement that India's vibrant community of app developers now supports more than 1 million jobs. Further, as per Apple, App Store payouts to developers in the country have more than tripled since 2018.

Apple's new stores demonstrate the company's desire to increase its presence in India, the world's second-biggest smartphone market after China.

Last month, Taiwanese electronics giant Foxconn, which manufactures iPhones, signed an agreement with Telangana to establish a manufacturing facility that has the potential to generate employment for over 100,000 people over the next decade.

To diversify its supply chain, Apple has ramped up production in India for exports as well as for the domestic market, where premium smartphones are in high demand.

In the year to March, Apple assembled smartphones worth $7 billion in India, or around 7 percent of its iPhones. More than $5 billion worth of devices were exported, or 5 percent of the company's global exports. According to industry data, the company assembled 1 percent of its smartphones in India in 2021 while India's export share was under 1 percent.

2022 was a game changer for the mobile phone market in India, especially with Apple betting big on the country.

Since 2017, Apple has asked three Taiwanese manufacturers to move to India, including Wistron, Foxconn, and Pegatron.

Apple began manufacturing iPhones in India in 2017 and currently produces the iPhone SE, iPhone 12, iPhone 13 and iPhone 14 (basic) models in India through its Taiwanese contract manufacturers — Foxconn, Wistron and Pegatron. However, all the Pro models sold in the country are imported.