Foxconn‘s iPhone production line in India was officially launched in August. Unfortunately, due to Apple facing some problematic export tariffs in India, Foxconn‘s Indian iPhone production line will only cater for the local Indian market. To this end, Foxconn will limit production at their Indian facility to an annual production capacity of only 1 million units.
Originally, Apple hoped that Foxconn‘s Indian iPhone production line could take into account both the export markets and India’s domestic market demand. To achieve this, Foxconn actively negotiated export preferential tariffs with the Indian government. Now, nearly half a year later, the Indian government still hasn’t given what Apple considers satisfactory rates.
According to the company, the export tariffs were favorable, but reinvigorated trade war between China and the US has unfortunately caused issues.Thus, Apple and Foxconn have decided go ahead with production in India, but only to supply the domestic market first. Until then, Apple will need to continue negotiating for more favorable rates. Until then, the company is limiting production to 1 million units annually.
Industry sources pointed out that Foxconn’s current smartphone production line in India is mainly based on Android, with their main focus being on Xiaomi devices. It’s been estimated that production of these devices can reach upwards of 3 million units, far more than Apple’s annual amount. Some insiders claim this is because iPhones require higher precision for their assembly, resulting in longer production times.
UP NEXT: Analyst says Apple won’t raise prices in the US in response to Trump’s new 10% tariff on Chinese goods
(Source)
