Apple Inc.(NASDAQ:AAPL), one of the Top Nasdaq Stock investor shareholders is laying down plans to establish its manufacturing unit in India. It had earlier on sent a proposal to the government of India through the commerce and industry ministry and hope are high that plan may go through which will have Apple do business in India.
As at the moment, no solid decision has been arrived at yet. It will definitely be upon the Prime Minister’s office to give the go-ahead. However, there are a number of states in India that are happily welcoming the move which it believes will benefit them in a great way.
Apple Inc hopes that the government of India will act fast to give it concessions and of course at the centre of the concessions will be the Customs duty waiver on the import components the company looks forward to move in. The previous moth had Apple Inc assure the government of India that indeed it had the blueprint ready and on its part it would commence its iPhones manufacture right after the deal was struck.
It is easy to notice the tapering sales in the US and China as well and Apple is fast in spotting its business opportunities. It sees India as the next big stop because of its fast growing Smartphone market. The move to establish a manufacturing branch in India is seen by the company as a progressive strategy that will assist it cut down on costs by a great margin. Apple Inc over time has been employing contract manufacturers to aid with the manufacture of its high end devices. This is what has placed it as one of the top Nasdaq Stock Picks.
Apple must be looking forward to being exempted from custom duty on component and equipment for duration of 15 years. However, it is not about to stop there since it is also demanding some relaxation of the mandated 30 percent associated with obtaining the local components. Basically, duty and tax-related concessions that the company is seeking are indeed manageable within the policy domain and it is upon the relevant departments to take full responsibility.
This organization over the years has been selling its products via the Apple-owned retail stores in Germany, China, UK and the US. In India, it lacks a wholly owned store and is thus forced to do such of its selling through distributors such as Ingram Micro.