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Apple will begin producing its high end iPhones in India under a contract with Foxconn early next year. That's what an internal source at a company told the Reuters news agency.
The supplier will expand a plant at Sriperumbudur in southeastern Tamil Nadu. According to the source, Foxconn will invest approximately $ 365 million in handset production for the Indian market. Currently, the factory also manufactures Xiaomi devices in the country.
The factory should focus on making the best iPhone models, probably still the current models and those of last year. By 2019, the new handsets from next year will probably be produced, besides the XR, XS, X and 8 ranges.
Older models such as SEs and 6s should be routed to the Wistron factory in Bengaluru. The curious thing is that the production of high-end devices may not be the strongest of the Indian market, known for the low power of users' purchase and its preference for input models. According to a study by Counterpoint, a market research agency, more than half of the iPhones sold in the country existed before the iPhone 8 in 2018.
Local production should also help to increase the share of sales of the iPhone X
The Escape from China
This could also be a step to help Apple lighten any possible new production speeds and avoid conflicts between the US and the China. At the end of the year, President Donald Trump said he could tax the importation of iPhone from the Asian country
which led Foxconn to think about other solutions such as the intention to transfer factories to Vietnam.
Together In addition, it should be remembered that Apple still lives the Chinese nightmare as a ban on iPhones below X in the country due to Qualcomm's patent infringement.
To this day, it is still not possible to know if Apple intends to change the whole of its base. from production to India seeking to get around these problems with China. However, this operation is feasible insofar as Foxconn expands its plant to produce high-end peripherals in a country renowned for the purchase of input devices.
It is estimated that the maneuver will generate 25,000 jobs. work in the country. Apple and Foxconn refused to comment on the talks. It is therefore difficult to know exactly what the two companies want to do with this change.
Source: Reuters
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