Apple's contract manufacturing partner to set plant in Bengaluru

President-elect Donald Trump wants to get Apple to manufacture in America

Apple is very close to starting production of its iPhone in India, as the company is now working with its local partners on setting up production facilities in the country.

Wistron, OEM maker for Apple, is all set to open a production unit in Bengaluru's industrial hub for the same, reports the Times of India.

Local manufacturing will make Apple products cheaper as imported goods have a 12.5 per cent duty on it. Following his victory almost two months ago, the pressure is now on to deliver to his voters and supporters, even if most of the reasons why USA manufacturing has declined are out of his control. Earlier, when Foxconn moved to India, it was believed that it would make Apple products in its upcoming facility in Maharashtra as it does in China in its Hon Hai Precision unit.

The company sells its products through Apple-owned retail stores in countries such as China, Germany, the USA, the United Kingdom and France.

Shares of the company were down about 0.9% to $115.65 in mid-afternoon trading on Friday. Japan-based Nikkei Asian Review said sluggish sales of the iPhone 7 led Apple to trim handset production during the January-March period.

Apple also sought clarity about the various offers under the modified special incentive package scheme, which is created to boost electronic manufacturing in India. Broadcom (AVGO) lost 2% intraday while Cirrus Logic (CRUS) slid 2.3%.

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AAPL now has a POWR Rating of A (Strong Buy), and is ranked #1 of 24 stocks in the Technology - Hardware category.

"Apple is one of the most underappreciated stocks in the world and has underperformed the market since the end of 2014", White said in a report. The cuts would include production of the most recent iPhone models, the iPhone 7 and 7 Plus. This allows Apple to lower the risk of relying on a single manufacturer - all the while maximizing its profit margins, Cult of Mac reported.