Apple in a news conference revealed that it will soon manufacture its Flagship model ‘iPhone’ in India. This step will take the company’s business to a new height, as per the officials.
India is one of the emerging markets that offer vast business opportunities for companies to grow. Seeing the huge business opportunity, Apple executives are planning to organize a meeting with government officials next month to discuss a business plan. Foxconn being a business partner will manage all the assembly in India rather than Wistron, which is Apple’s sole iPhone assembler.
One of the officials from Apple has already praised the government’s initiative to set up iPhone plant in Tamil Nadu, India. Foxconn already has production lines there for various other products and is spending around $356M to expand their infrastructure for the new setup of iPhone. Two other sources are yet to validate the news.
Apple has a tiny and shrinking share of India’s smartphone market that focuses majorly on low price models. Apple’s old business partner Witron, on the other hand, is indulged in the manufacturing of iPhone SE, iPhone 6S and iPhone X family locally. All these models from Apple are sold in India and all over the world.
Considering the trade war between China and the US, Apple is trying to play safe and is encouraging production in other countries too. It might be a way around Apple’s strategy to save US import tariffs on Chinese-made goods. Apple also proclaimed that if taxes hit 25% in China, then they will quit their iPhone production plant from the country.
A report reveals all the facts and challenges that Apple may face in the year while doing business in India. Regarding the concern, the company has also developed a five-point growth plan to address the issues and challenges.