Due to increase in the price of iPhone and decrease in the sale, Apple seems to be devoted toward India and is planning to start mass production of iPhone in India. As reported by Bloomberg, Taiwanese company Foxconn which is Apple’s biggest producer of iPhone is planning to start mass production of iPhone in India.
Terry Gou Chairman of Foxconn Technology Group informed Bloomberg that Apple is planning to expand the company in India on the invitation of Prime Minister of India, Narendra Modi. As Wistron is already manufacturing the old series of iPhone locally in Bengaluru, Apple has planned to produce new iPhone series with the help of Foxconn in India. Chairman Terry Gou said: “In the future we will play a very important role in India’s smartphone industry. We have moved our production lines there”.
It was reported by Bloomberg that Apple is trying to enter India’s smartphone market that is considered to be among the rapidly growing market in the world. But for their place in market, Apple has to hold sufficient shares in the market to cope with the increasing prices of iPhone and to compete OEMs. Foxconn is on its way of launching the trial of newest iPhone models in India. It is reported that Foxconn is investing an amount of $300million in India. The advantage of locally manufacturing iPhone in India is that the models like iPhone XS and XR would be more affordable as import duties would not have to be paid by the country.
At Counterpoint Research, a Gurgaon-based analyst Karn Chauhan said: “For Foxconn, the China market for iPhones is saturated, and labor costs are three times higher compared with India. India is still an emerging smartphone market, it has a lot of potential domestically and could serve as an export hub for the region”.
In China, companies like Huawei and Xiaomi are already giving tough competition to Apple as they are more affordable than iPhone. So planning for mass production of iPhone seems to be in favor of Apple to open a retail store in India with 30% sourcing rule.