Apple Computer Inc has woken up to the dramtically cheap computing skills available in India, and on Friday said that it wants to tap India’s engineering talents for developing new products – but ruled out establishing a manufacturing subsidiary for the present. President Michael Spindler said India’s small domestic computer market and high import tariff […]
Apple Computer Inc has woken up to the dramtically cheap computing skills available in India, and on Friday said that it wants to tap India’s engineering talents for developing new products – but ruled out establishing a manufacturing subsidiary for the present. President Michael Spindler said India’s small domestic computer market and high import tariff was holding back Apple’s manufacturing plans. India is one of the smallest computer markets in the world with an annual demand of only 180,000 computers, which is totally out of the way of the potential. Spindler, in India to seek new opportunities, said Apple was committed to the Indian market, but needed to establish its brand image and a multi-channel distribution system before it could plan manufacturing. Apple’s attempt to manufacture the Mac in India came to nought last year when local partner Digital Equipment (India) Ltd failed to push them in the local market.There was no cost advantage in producing in India. Other places like Hong Kong and Singapore are much more price-competitive. The duties here are too high, he said. Indian Finance Minister Manmohan Singh last month lowered import duties on computer components and parts, but only to about 50%, from 85%.
