The smartphone manufacturer only has plans to set up a manufacturing plant and start assembling the 4-inch iPhone SE in Peenya, a town on the outskirts of Banglore.
The Cupertino, California-based giant is rumored to begin operations in April, and there are no plans to start producing its flagship devices in India, according to an unnamed source who spoke with Mashable.
If Apple’s project is a success, it could provide huge benefits for India, a country fighting with China to increase job growth in the tech sector and establish itself as a place for large, multinational corporations to develop their products.
“Apple’s decision on initial manufacturing in Bengaluru has further enhanced the reputation of Bengaluru (Bangalore) as the most preferred destination for foreign investment and further validation of the State Government Policies aimed at fostering manufacturing, innovation and investments in Karnataka,” said Priyank Kharge, the IT minister for the state of Karnataka, via statement.
The move could be just as beneficial for Apple, which only owns about 2 percent of the smartphone market share in the country of more than 1 billion people.
Tim Cook spoke about Apple’s move to India, and what it means for the company in an earnings call earlier this week, according to Forbes.
“Despite the demonetization move in India that created lots of economic pressure there last quarter, despite that, we had all-time record revenue results, and so we were very happy about that. I think in the longer term, it’s a great move, and I feel really good about how we’re doing there. We are in discussions on a number of things, including retail stores, and fully intend to invest significantly in the country and believe it’s a great place to be,” he said.