Historically, Apple has primarily relied on Chinese manufacturers and their home facilities for the mass production of their iPhone lineups. However, in recent times the American company has been taking planned downsizing steps in the region whilst investing its production in other countries such as India and Vietnam. Now, Apple is starting to export from India after Foxconn started the production of the iPhone XR.
According to a report, Apple will see an export doubling its value to $3.2 billion this fiscal year. The Cupertino-based company is set to increase its manufacturing and financial commitment within the Indian subcontinent. Ravi Shankar Prasad, IT and Electronics Minister, met Foxconn officials that stated that the iPhone XR model is now being made in the Chennai (Tami Nadu) factory in South India. Initially, Apple had first invested in Indian production and manufacturing via Wistron. It is another Taiwanese maker similar to Foxconn but is based in Bangalore, Karnataka.
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Foxconn Group Chairman, Terry Gou, stated that the company is looking at the beginning of mass production of iPhones in India. This is in line with the Indian Government’s interests as the country wishes to be a preferred manufacturing destination for electronics based companies. India is known to levy import duties and tariffs on foreign imports. However, the country also helps incentivize foreign manufacturers to set up production within India. Notable examples include major brands such as Xiaomi, Samsung, Oppo, Vivo, and LG.
Local manufacturing also ensures that Apple can avoid the 20% duty that the Indian Government has mandated for imported devices. Thus, the American tech giant is hopeful of pricing its handset offerings more aggressively within the second-largest smartphone market in the world after China.
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(Via)
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