Feb 05, 2017 08:00 AM EST

Apple Chooses India For iPhone Assembly

Apple Inc. has selected India as the location of its new manufacturing operations for iPhone. The initiative is expected to create jobs in the country and could boost its manufacturing industry.

As reported by CNET, the planned manufacturing operations in India will mainly be for the assembly of iPhone, Apple's flagship mobile phone brand. Choosing India is a strategic move since the tech company is yet to penetrate the market.

India has been big on smart phones especially those that are created by Chinese companies, including Xiaomi, Lenovo and Vivo. While Apple's iPhone did sell well in the country, it could not compete with the Chinese smart phones when it comes to sales. Jobs & Hire previously reported that iPhone 7 sales helped Apple reach its highest quarterly income.

The manufacturing operations will be a nice addition to the Apple iOS design and development center in Bengaluru. The decision to open an assembly line in India signals Apple's confidence in the country. However, it is not immediately clear whether the decision could endear the iPhone to Indian customers.

Apple did not confirm if it is indeed planning on launching a manufacturing operation in India. However, it did say that it plans to expand its business in the country.

Mashable reported that Apple will not actually manufacture iPhones in India. It will only assemble the 4-inch iPhone SE, which means that the plan would not necessarily lead to a cheaper iPhones for customers. Wistron's manufacturing facility in Peenya will be the one in charge of assembling the smartphones in the country, according to sources.

The assembly plan may be the result of Prime Minister Narendra Modi's "Make In India" initiative. The prime minister launched the project to attract more companies and boost the manufacturing industry in the country. Companies that set up manufacturing operations in India are given incentives.

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