Apple’s focus on India appears to be substantial with the recent reports suggesting the company had begun manufacturing iPhone 7 starting last month. Earlier, Apple had been producing the cheaper iPhone SE and the iPhone 6s variants through Wistron’s manufacturing facility in Bengaluru, and the iPhone 7 has been recently added to the list. Well, now a new report from Bloomberg, suggests another manufacturing facility Foxconn is working on to bring trial production of the iPhone X/Xs devices in the country.
The report suggests Apple would start trial production of the high-end iPhone X/Xs smartphones locally with the help of Foxconn manufacturing facility in Chennai, Tamil Nadu. Foxconn, which is already known for producing Xiaomi and Nokia products in Andhra Pradesh and Tamil Nadu is all set to build the high-end iPhones in the country.
This comes after Wistron’s 5000 crore application, which recently got approved by the Indian ministry to produce high-end smartphones featuring iPhone 8 and above. It is still unclear and highly unlikely for both the facilities Foxconn and Wistron producing iPhone X/Xs smartphones simultaneously. Regardless, for Apple, producing iPhones in the country will surely cut the current heavy import duties for its top models marginally by 20%, and also the company would be in advantage to open its retail stores in the country as the government charges 30% local sourcing for retailers.
Further, the report indicates Apple at present holds only 1% of its smartphone share in India that’s because of its steep pricing due to the heavy import duties and also Chinese brands that have emerged with smartphones that cost around one-tenth pricing of that of the iPhone. Henceforth, the local production surely helps Apple to cut its iPhone pricing and compete against the established brands in India.