Apple Considering making iPhone’s in India
Apple has asked Foxconn to explore the possibilities under Make in India Campaign
India has been throttling it’s industrial growth in the past few years due to solid FDI inflow and encouraging government schemes. The country has been known to be a leading service provider, now it also aims to be in the manufacturing segment. Earlier this year, Apple CEO Time Cook paid a visit to India, where he was asked by PM Narendra Modi to start assembling iPhone’s in India, Apple seemed to be reluctant in doing so back then.
They might be reconsidering though, Apple has sounded out one of its largest contract manufacturing partners, Foxconn Technology Group, to look at the possibility of making the iPhone in India in the next two to three years, according to an article in ET Telecom.
Apple will be launching the iPhone 7 and the iPhone 7 Plus at an event later tonight. It is reported that the company is expecting a huge response from the consumers for this. And as a part of their preparation, the company has already started shipping tonnes of devices from the manufacturing plant to various countries where it is expected to debut. But apart from that, it is reported that the company might be planning to start manufacturing the iPhones in India.
Cook announced the setting up of an app development unit in Bengaluru and opened a development centre for Apple Maps in Hyderabad, with an investment of $25 million. Apple wants to open wholly owned stores in the country, which Cook sees as integral to winning customers by setting new service standards.
Apple badly needs to boost sales in the world’s fastest-growing smartphone market at a time US and China are slowing. In recent years, Cook has repeatedly spoken of India as being a market where Apple sees great potential. “India is fast-growing, but our base there is smaller,” Cook told the Washington Post in an interview last month.
Another reason to go local is that India has started offering differential duty structures for companies making phones in the country, which means such devices will be cheaper than imports. “Tax benefit will remain one of the key drivers for setting up new base in India,” said Anshul Gupta, research director at Gartner.
Apple had a 47 per cent share of the premium market segment, Rs 30,000 and up in the quarter ended June, marginally trailing market leader Samsung, which had a 49 per cent share by volume, according to Counterpoint Research.
With Apple’s growing popularity in India, there’s speculation that it may reduce the lag between launch and sales start of the iPhone 7 in India, having shortened it last year for the 6s as well.
Source: ET Telecom