If things go as planned, iPhones, iPads and iPods could soon be manufactured in India as Foxconn Technology, the leading contract manufacturing partner of Apple Inc is reportedly discussing details of the move with the Indian government. Sources close to the development say that currently, Foxconn is considering the state of Maharashtra to set up its manufacturing facilities.
Foxconn is the largest electronics contract manufacturer in the world, and is eyeing India mainly with the intention of reducing costs as its Chinese operations growingly become expensive. If the move comes through, Foxconn could be yet another addition to the list of companies who are looking beyond China in a bid to prevent the high labor wages and production costs from eating into their profits. But that’s not all there is to Foxconn’s reported move to India – the country is the third largest smartphone market in the world and this decision could give Apple a much-needed boost in India.
If successfully executed, this strategy could help Apple directly challenge Samsung in the Indian smartphone market as the former will be able to offer cheaper products to its Indian customers. Currently, Samsung is the largest selling smartphone brand in India. And last, but not the least, in doing so, Foxconn will fortify its own standing in Apple’s contract manufacturing ecosystem.
It is understood from initial reports that by 2020, Foxconnintends to develop as many as 12 manufacturing facilities in India. However, the company is not willing to part with any more details regarding its expansion plans in India.
However, market watchers expect that Foxconn will move its operations to India in a phased manner. It is likely that Foxconn will initially only build certain components in India, while it would continue to assemble iPhones in China. According to the Chief Minister of Maharasthra, DevendraFadnavis, the cities of Pune or Aurangabad could host Apple’s manufacturing facilities. Besides Apple, Foxconn is also a contract manufacturing partner for Acer, Xiaomi and Sony.