Apple and Foxconn to manufacture iPhones, iPads and iPods in India

By Glen White
In the near future, iPhones as well as iPods and iPads may be manufactured in India. The main manufacturing partner of Apple, Foxconn Technology is said...

In the near future, iPhones as well as iPods and iPads may be manufactured in India. The main manufacturing partner of Apple, Foxconn Technology is said to be in talks with the Indian government in order to build its manufacturing units in western Indian state of Maharashtra, according to a Reuters report.

As the world's largest contract manufacturer of electronic products, Foxconn Technology's move to enter into India is aimed at reducing cost of production, offsetting wages inflation in China and to boost Apple products sales in the world's third largest smartphone market.

Once successful, such a strategy essentially mean challenging Samsung Electronics position in India, manufacturing cheaper Apple products, which in turn will increase profits, and lastly by doing these Foxconn Technology may see more business coming its way from Apple in the coming years.

Foxconn building manufacturing plants in India means that indigenously built Apple iPhones will be competing with Samsung Electronics - which is at the moment the number one smartphone selling brand - and local players like Micromax in the country.

By 2020, Foxconn wants to develop 10-12 facilities in India; however the company has declined to disclose its plan in detail.

According to Phone Arena, certain parts would be built in India, while the assembly of the iPhones by Foxconn would continue to be done in China. It is also said Foxconn after setting up its manufacturing units in India, will sell Apple products locally and in international markets.

Maharashtra chief minister, Devendra Fadnavis said Foxconn would be building manufacturing centers in Pune or Aurangabad in Maharashtra, reported by IBTimes.

Last year, Foxconn was forced to shut it manufacturing shop in India after client Nokia was taken over by Microsoft Corp.

Apple is one of the biggest clients of Foxconn Technology (Hon Hai Precision Industry Co Ltd). The company also builds electronic parts for some the leading electronics companies like Xiaomi, Acer and Sony.

Industries Minister of Maharashtra Subhash Desai told Reuters that Foxconn would be sending a delegation of their officers to scout for locations in a month's time.

People's interest has increased after the larger screened iPhone 6 and iPhone 6 Plus were launched in India. However, the cost of Apple iPhones is said to be the only drawback when competing with Samsung's smartphones and other local smartphone manufacturers.

Apple iPhone 6 (16GB) cost 44000 rupees ($687.82), while Samsung's Galaxy S6 (32 GB) cost 40,000 rupees ($625.29).

Share

Featured Articles

Manufacturers shouldn’t overlook remote access security

Justin Reilly is Chief Executive at Impero Software, a company which offers secure remote access solutions. Here he discusses remote access security

Manufacturers struggle to keep supply chains resilient - BCG

Research from Boston Consulting Group shows that manufacturers are finding it a challenge to keep their supply chains resilient

Reducing Scope 3 emissions with Jeff Dewing, Cloudfm CEO

Jeff Dewing, CEO of Cloudfm & Mindsett, shares what net zero goals businesses need to be aware of & how they can take control of their Scope 3 emissions

Accrol Group’s Oceans on paper manufacturing & supply chains

Procurement & Supply Chain

Revive manufacturing with Industry 4.0, says Baserow CRO

Smart Manufacturing

Deloitte: smart manufacturing is driving automotive’s future

Smart Manufacturing