Apple is reportedly investing $1 billion to expand local manufacturing of iPhones in India. The move is seen as the way to look beyond China for assembly of iPhone. It is being described as part of Apple‘s plan to export ‘Made in India’ iPhones across the world. The details arrive amidst the ongoing trade war between the US and China. The iPhone maker is expected to become a victim soon forcing it to increase the price of iPhone around the world.
Earlier, reports claimed that Apple is looking to expand production to Vietnam and India to thwart effects of trade war. Now, an unofficial source has told the Times of India that the Cupertino, California-based company is investing $1 billion through its partners. “They have said the production will be used for meeting the demand for its products across global markets.” Taiwan-based contract manufacturer Foxconn is said to be the investment partner in Apple’s push to assemble iPhone in the country.
Foxconn will use its facility in Chennai to manufacture products for Apple’s global markets. Alongside Foxconn, the report notes that other component suppliers will also be making investments in the country for local push. Apple has been assembling iPhone locally in India in partnership with Wistron in Bengaluru. But it is now tapping into Foxconn to further expand local manufacturing in the country. The report notes that ‘testing is underway’ for the products made in India and iPhone maker is seeking clarity on export incentives.
After pushing for Make in India, the government is now encouraging companies to make in India and export to the world. Ravi Shankar Prasad, the IT and electronics minister, has also asked the iPhone maker to expand its manufacturing base in the country. “Apple has started manufacturing iPhones in India… making components and are exporting as well… Apple is on board as far as India’s success story is concerned,” Prasad said.
The expansion of local manufacturing in India will help the company gain market share in the premium segment. It might be able to price iPhones aggressively to take on Samsung and OnePlus‘ flagship smartphones. The increased local production is also seen to help Apple meet the 30 percent local sourcing norms required to open retail stores in the country. The Tim Cook-led company is said to be planning to open three brick-and-mortar stores in India and establish online sales. It has reportedly conveyed the plans to the government and is looking at Mumbai and Delhi for first retail stores.