Foxconn To Start Trial Run Of iPhone X/XS Production In India
Foxconn, a known Taiwanese contract manufacturer, will soon start producing Apple’s latest smartphones, namely the iPhone X and iPhone XS models in the Indian subcontinent. Fresh reports claim that the company is planning to start a trial run of the said production in a few weeks. This news arrives after Apple announced that another manufacturer, Wistron has started manufacturing the iPhone 7 in the Indian market.
What Does This Mean?
Sources claim the trial run of the iPhone X and iPhone XS smartphone models would take place before Foxconn starts full-scale assembly of the said devices. This would take place at the factory outside the city of Chennai. If the plan proceeds to fruition, Apple would then be responsible for the production of iPhone 6s, iPhone SE, iPhone 7 and the iPhone X/XS in India. The Indian assembly line of Foxconn’s Hon Hai Precision Industry would manufacture smartphones for the local and export markets; until the announcement of the next iPhone, suggestively in September this year.
The reports cite that out of 140 million smartphone shipments in India last year, Apple had just 1.7 million. This makes for just around a 1 percent share in the country. If the company starts the production of its premium devices locally, it would get rid of the 20 percent import duty that it has to pay. The company would meet the 30 percent local sourcing criteria; which would make it get one step closer to opening its own chain of retail store in India. Foxconn, its manufacturer is said to invest around US$ 300 million to set up the production; and will increase the investment as the capacity increases.
It is likely that Apple iPhone X/XS will get a significant price reduction if they are manufactured locally. This is due to the aforementioned freedom from import duties. Start of the company’s own retail stores can bring initiatives like “Today at Apple” to the country; which is the name of creative sessions by trained professionals.