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PM Modi Invites Foxconn Chairman; iPhone to Go Into Mass Production in India

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iPhone to Go Into Mass Production in India

Apple believes that India can become the next China, a huge market for high-end smartphones. However, for some reasons, Apple could not establish its manufacturing units in the country. But now situations favor Apple as India’s prime minister Narendra Modi invited Foxconn chairman Terry Gau to expand manufacturing to more recent iPhone models.

Notably, Foxconn has already been manufacturing older iPhone models in its Bangalore plant for several years. With this new development, the iPhone contract manufacturer can produce more recent iPhone models in India.

Foxconn to Produce More Recent iPhone Models in India

According to Bloomberg News, “Foxconn is ready to start trial production of the latest iPhones in the country before it starts full-scale assembly at its factory outside the southern city of Chennai.”

Attending an event in Taiwan, Gou said, “In the future, we will play a very important role in India’s smartphone industry; we have moved our production lines there.”

There are two reasons why Foxconn is shifting base to India. First, India is emerging as the fastest-growing smartphone market, and China stagnates; and second, Apple is facing stiff competition from local smartphone makers like Huawei Technologies Co. and Xiaomi Corporation.

Apple has always been an aspiring brand for Indian consumers, but iPhones’ high prices prevented customers from emptying their pockets. However, local manufacturing will undoubtedly help Apple to avoid import duties of 20%, and this will reduce the prices of iPhones.

Karn Chauhan, a Gurgaon-based analyst at Counterpoint Research, notes “For Foxconn, the China market for iPhones is saturated, and labor costs are three times higher compared with India.”

Chauhan further adds, “India is still an emerging smartphone market, it has a lot of potential domestically and could serve as an export hub for the region.

Foxconn is fully aware of the geography, and economic climate of India as the company has already established two assembly sites in the southern Indian states of Andhra Pradesh and Tamil Nadu, where it manufactures Xiaomi and Nokia devices.

China is in a trade war with the United States, and therefore, Foxconn is exploring production location in India, and this move will ease the tension between the two giants from different hemispheres.

That’s all folks!

Summing up…

India has an excellent opportunity to welcome Apple. With cheap labor and an affluent market, Apple will get the most conducive atmosphere to do business here. Indian consumers are keen to use a premium device like an iPhone, which might become cheaper now.

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