After months of speculation, Apple has finally taken the decision to move its manufacturing unit Foxconn from China to India. This means that from now onwards your iPhones would be “Made in India” and Apple will start from assembling the current iPhone 11 line-up.
In fact, some insider reports also suggest that the company has already manufactured a small batch of iPhone 11 units locally - despite the production yield being limited and the similar units are also being shipped to the retail stores worldwide.
Apple now aims to scale up its local production in Chennai, India where they will set up their manufacturing plant.
Apple is making this big commitment with India after knowing that it’s the world’s second-largest smartphone market and after knowing that they would have to cut short the company’s dependence on China - who already makes majority of the iPhones.
However, there is one catch to this fairytale story and that arises because of the company’s contract manufacturing partner, Taiwan-based Wistron. Currently based in Bangalore, the partnered company, since 2017, has locally assembled older iPhone SE, iPhone 6s, iPhone 7, and iPhone XR models in India and among that Apple discontinued the production of iPhone SE and iPhone 6s last year for obvious reasons. Now Apple didn’t have an assembly partner to produce the own-going flagship iPhone models in India.
The news first got revealed by India’s Minister of Commerce and Industry, Piyush Goyal who posted a Tweet stating that Apple has begun assembling iPhone 11 models in India. On the other hand, Apple didn’t leave any comments on the story.
With Apple assembling smartphones in India, they would also get the advantage of a cut of 20% import duty tax which the Indian Government levies on the import of electronics-related products.
While smartphone makers like Xiaomi, Oppo, Vivo and Samsung have already made great deals with the manufacturers to produce more of their locally sold smartphones in India, Apple on the other hand have always struggled to find contract manufacturers that would fulfill their quality and safety standards.
Furthermore, there were reports in March that Apple’s other contract manufacturers have made their attempts to move or expand in India but almost all of them had to face the local law issues. One such example is Pegatron who is still in plans of opening its subsidiary in India to partner up with Apple.
Foxconn already considers India as one of its biggest markets and therefore they also plan onto invest $1 billion for their operations in the country. Moreover, to support the initiative of smartphone makers on a better scale, New Delhi has also announced a $6.6 billion plan too.
Tim Cook announced at the start of this year that Apple will open its online store for India in the next few months whereas the first brick-and-mortar retail store would be opened next year. Fortunately, both of the plans are on track despite the pandemic and also how Apple also stands as the least impacted smartphone maker in the country because of coronavirus.
For now, Apple holds a 1% smartphone market share in India. But the figures change to complete dominance when it comes to the matter of premium handsets - the ones that are priced at $400 or above.
Read next: Apple Provides Information on How It Ranks Web Search Results
In fact, some insider reports also suggest that the company has already manufactured a small batch of iPhone 11 units locally - despite the production yield being limited and the similar units are also being shipped to the retail stores worldwide.
Apple now aims to scale up its local production in Chennai, India where they will set up their manufacturing plant.
Apple is making this big commitment with India after knowing that it’s the world’s second-largest smartphone market and after knowing that they would have to cut short the company’s dependence on China - who already makes majority of the iPhones.
However, there is one catch to this fairytale story and that arises because of the company’s contract manufacturing partner, Taiwan-based Wistron. Currently based in Bangalore, the partnered company, since 2017, has locally assembled older iPhone SE, iPhone 6s, iPhone 7, and iPhone XR models in India and among that Apple discontinued the production of iPhone SE and iPhone 6s last year for obvious reasons. Now Apple didn’t have an assembly partner to produce the own-going flagship iPhone models in India.
The news first got revealed by India’s Minister of Commerce and Industry, Piyush Goyal who posted a Tweet stating that Apple has begun assembling iPhone 11 models in India. On the other hand, Apple didn’t leave any comments on the story.
With Apple assembling smartphones in India, they would also get the advantage of a cut of 20% import duty tax which the Indian Government levies on the import of electronics-related products.
While smartphone makers like Xiaomi, Oppo, Vivo and Samsung have already made great deals with the manufacturers to produce more of their locally sold smartphones in India, Apple on the other hand have always struggled to find contract manufacturers that would fulfill their quality and safety standards.
Furthermore, there were reports in March that Apple’s other contract manufacturers have made their attempts to move or expand in India but almost all of them had to face the local law issues. One such example is Pegatron who is still in plans of opening its subsidiary in India to partner up with Apple.
Foxconn already considers India as one of its biggest markets and therefore they also plan onto invest $1 billion for their operations in the country. Moreover, to support the initiative of smartphone makers on a better scale, New Delhi has also announced a $6.6 billion plan too.
Tim Cook announced at the start of this year that Apple will open its online store for India in the next few months whereas the first brick-and-mortar retail store would be opened next year. Fortunately, both of the plans are on track despite the pandemic and also how Apple also stands as the least impacted smartphone maker in the country because of coronavirus.
For now, Apple holds a 1% smartphone market share in India. But the figures change to complete dominance when it comes to the matter of premium handsets - the ones that are priced at $400 or above.
Read next: Apple Provides Information on How It Ranks Web Search Results
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