In a desperate attempt to increase its sales, the Apple company is asking the Indian government for a series of tax incentives to manufacture iPhone terminals locally. We are talking about a plan that Apple and Foxconn developed together, the Taiwanese going to build a factory there to assemble iPhone terminals that will be sold locally.
Apple acted in a similar way in Brazil because the government imposed very high import taxes for iPhone terminals, and sales were limited. After the opening of the factory, iPhone prices fell in Brazil and sales increased, and Apple wants to do the exact same thing in India, 30% of the terminal's components also having to be produced locally.
Apple wants the Indian government to offer it a series of tax facilities that will reduce part of the costs of building a factory in the country and create jobs. The Indian government has laws that allow the granting of tax facilities to companies that are interested in investing in the country, but for now it is not known what the Apple company will receive.
Apple tried to explain to the Indian government that the iPhone terminals use components that are too advanced from a technological point of view and cannot be manufactured locally. The government did not want to hear such nonsense, so it refused to allow Apple to sell iPhone terminals without high import taxes, so now Foxconn will build a factory.
After the sale of iPhone terminals manufactured in India, Apple will have greater chances to substantially increase its sales in a country with over 1 billion inhabitants, most of them extremely poor.
"US-based iPhone maker Apple has sought incentives from the government to set up a manufacturing unit in the country. In a communication to the government, the Cupertino-based technology major has asked for incentives related to the Department of Revenue and Department of Electronics and Information Technology (DeITY), an official told PTI."
