For several years, Apple has been producing old models at a Bangalore plant.iPhoneBut now it will expand production to newer models. Earlier reports said that Foxconn is preparing to start trial production of the latest iPhone in India, and then fully assembled in a factory outside the southern city of Chennai.
“In the future, we will play a very important role in the Indian smartphone industry,” Guo Taiming said at an event in Taiwan. “We have already moved the production line there.”
India has become the fastest growing smartphone market in the world. At the same time, China’s smartphone market growth has stagnated and Apple’s share in China has been met.Huawei,MilletWaiting for the erosion of local opponents. Apple is only a "small company" in the Indian smartphone market. To a certain extent, the iPhone is expensive, but localized production is expected to help Apple avoid a 20% import tax.
Kahn Chuhan (Karn Chauhan), analyst at Counterpoint Research in Gurgaon, a market research firm, said: "for Foxconn, the iPhone China market is saturated and labor costs in China are three times higher than in India. India remains a burgeoning smartphone market with huge domestic potential to become a regional export hub. "
Guo Taiming also said on Monday that he plans to withdraw from Foxconn's day-to-day operations and focus on a broader strategy. Guo Taiming's special assistant, Louis Woo, said that Guo Taiming would not step down or give up his position as chairman.
It is unclear how much Apple’s production of the iPhone in India will have an impact on China’s business operations. For many years, China has been Apple's most important manufacturing base and home to Foxconn's largest production facilities and hundreds of other partners. Foxconn currently has two assembly sites in Andhra Pradesh and Tamil Nadu in southern India to produce equipment for Xiaomi and Nokia. Transferring more production to India will help Apple and Foxconn diversify their manufacturing activities and reduce their reliance on China.
According to people familiar with the matter, when Apple announced a new generation of iPhone in September this year, Foxconn parent company Hon Hai Precision's Indian assembly line will serve both the local market and the export market. Foxconn will initially invest about $300 million in preparation for the production of apple products, and investment will gradually increase as capacity expands.
Guo Taiming said that Foxconn is negotiating with the Indian government on investment terms. He said that Foxconn currently has more than a dozen software employees in India and plans to increase to 600.
“After all, we are the main assemblers,” said Guo Taiming. “If our customers want to scale up, it needs to rely on us to expand the full supply chain.”
Produced in IndiaMobile phoneHelps Apple promote its retail business in India. To open a direct store in India, Apple needs to purchase 30% of its parts in India. Indians bought more than 140 million smartphones last year, of which only 1.7% came from Apple, and local consumers prefer Chinese cheap phones. On the Xiaomi India website,Red riceNote 7 is priced at 9999 Indian rupees (about 143 US dollars), only about one-tenth of the price of Apple iPhone X India.