Amidst the rise in iPhone prices and slumping sales, Apple looks more sincere than ever to India. The company apparently is planning to start a great production of iPhones in India with the help of Foxconn.
Terry Gou chairman of Foxconn Technology Group said that there is mass production of iPhones in India this year. He also told that Prime Minister Narendra Modi invited him to India to plan his Taiwanese company’s expansion in the country.
Apple already has Wistron older phones produced at a plant in Bangalore for several years, and now manufactures recently started making the iPhone 7 which is one of the more recent models of iPhones.
Reported by Bloomberg News, earlier this month, Foxconn is ready to begin the trial production of the latest iPhones models in India.
India has now become the fastest-growing smartphone market in the world, while China decline and Apple loses share to local competitors such as Xiaomi Corp. and Huawei Technologies Co. Apple is a small player in India, it’s mainly because of its high prices, but local manufacturing would help the Cupertino, California-based company avoid import duties of 20 percent which means newer iPhone models such as iPhone XS and iPhone XR could become more affordable. As per the report, Foxconn plans to initially invest $300 million to set things up for Apple in India.
Terry Gou said at an event in Taiwan, “In the future, we will play a very important role in India’s smartphone industry”. Further Added he said, “We have moved our production lines there.”
Gou also told on Monday that he plans to step back from daily operations to concentrate on broader strategy. The founder isn’t drop-off or relinquishing his chairmanship, said Louis Woo the special assistant of Gou.
It’s not yet clearly mention that how Apple’s steps into India will affect its China operations. China has always been the company’s most important manufacturing roots for years, It’s the home for Foxconn’s biggest facilities and hundreds of other partners.
Foxconn already has the two assembly sites in the southern Indian states of Andhra Pradesh and Tamil Nadu, where it develop devices for Xiaomi and Nokia. Development of more production in India will diversify Apple and Foxconn’s manufacturing footprint away from China in the midst of ongoing trade tensions with the U.S.
The Indian assembly line of Foxconn’s Hon Hai Precision Industry Co. would provide local and export markets by the time Apple announces its next iPhone models in September, people familiar with the matter have said. Gou said that his company is making agreements with the government about investment terms. He has many software people in India and he plans to increase that to 600, he said.
On Monday Gou said, “We are the primary assembler after all”. Further “If our customer wants to boost its scale, it will need to depend on us to grow the comprehensive supply chain.” Producing phones on local basis also help Apple’s retail push in India. The company requires to meet a local sourcing rule of 30 percent to be able to open its own stores in the country.
Last Year Indians bought more than 140 million smartphones, In which just 1.7 million sold by Apple, as people favored cheaper models from China. On Xiaomi’s Indian website, the new launched Redmi Note 7 has a price of 9,999 rupees ($143), which is about a 10 time the price of Apple’s iPhone Xs in the country.