Apple will reportedly start assembling its premium iPhone models in India
>Apple will begin assembling its top-end iPhones in India through the local unit of Foxconn as early as 2019, the first time the Taiwanese contract manufacturer will have made the product in the country, according to a source familiar with the matter. Importantly, Foxconn will be assembling the most expensive models, such as devices in the flagship iPhone X family, the source said, potentially taking Apple’s business in India to a new level. The work will take place at Foxconn’s plant in Sriperumbudur town in the southern state of Tamil Nadu, this source added.
>Foxconn, which already makes phones for Xiaomi Corp, will invest 25 billion Indian rupees ($356 million) to expand the plant, including investment in iPhone production, Tamil Nadu’s Industries Minister M C Sampath told Reuters. The investment may create as many as 25,000 jobs, he added. The other source declined to be named as this person is not authorized to speak to the media. A third source confirmed Foxconn planned to assemble iPhones in India.
>The Hindu newspaper first reported on December 24 that the Foxconn plant would begin manufacturing various models of the iPhone. Reuters is first to report the size of the investment and the kind of phones to be assembled.
>It’s a move that would make a lot of sense for Apple. In recent years, the Indian government has put in place high tariffs on imported smartphones, while also offering cheaper import rates on smartphone parts in order to encourage manufacturers to build devices in India and drive the country’s manufacturing business. Avoiding those high tariffs is the reason Apple started building the iPhone SE and 6S in India. And while the older phones still haven’t been a runaway success, it seems Apple is willing to try a similar strategy with its more feature-filled high-end models.
>Apple has been struggling of late in the Indian market, with its pricey phones unable to compete with cheaper and more popular models from brands like Samsung and Xiaomi. The most popular Apple phone in the country is the decidedly dated iPhone 6, and while the company is certainly trying to boost sales of its more expensive (and more profitable) new phones, it’s still going to be an uphill battle to break into the market. It still remains to be seen whether cheaper iPhone X models will be the tipping point, but by building the phones in India, Apple is at least doing all it can to set itself up to try.
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