Apple iPhone maker Foxconn looks to set up plant in India: report
11 Jun 2015
Apple manufacturing partner Foxconn Technology is in talks to open an assembly plant in India, in a bid to achieve cost reductions, potentially allowing the handset to achieve derive greater sales and margins in the growing market.
Foxconn is reported to be looking to manufacture iPhones as also iPads and iPods in India, for both local and international market, says a Reuters report.
Reports also quoted Maharashtra industries minister Subhash Desai on Foxconn's talks with government officials on proposed plans for local production, which would help the company lower prices in the world's No3 smartphone market and gain an upper hand over arch rival Samsung Electronics as also local players.
Foxconn had earlier announced plans to build up to a dozen facilities in India by the year 2020. But it did not specify plans to to build Apple iPhoes or iPads.
Foxconn, which used to build mobility devices in China, has started showing an interest in strategically expanding around the world, to better serve certain key markets.
India could help Foxconn counter accelerating wage inflation in China, where it makes the majority of iPhones, and bring production closer to key markets.
`Make in India' would be a key strategic move for both Apple and Foxconn and a victory for the Modi government.
With lower production costs, Apple could also get more aggressive with iPhone pricing in the country, where it trails behind South Korea's Samsung and local Indian manufacturers like Micromax.
Apple could boost sales in India through a variety of different strategies, including payment plans to mitigate the up-front costs of buying an iPhone, as well as partnering with resellers for retail storefronts.
Also, the larger-screened iPhone 6 and iPhone 6 Plus are said to have boosted interest in India, though costs are still a prohibitive factor.
Apple's iPhone 6 with 16 GB sells for around Rs44,000 ($687.82) in India, versus Samsung's Galaxy S6 with 32 GB which sells for around Rs40,000 ($625.29).
With a 10 per cent market share in India, Apple's iPhone trails Samsung and local manufacturers such as Micromax, which dominate the market, according to Counterpoint Research Market Monitor.
