India’s local unit Foxconn’s assembled Apple’s top-end iPhones are likely to hit the market in the next month. This initiative would potentially help the company to drop prices in the world’s second-biggest smartphone market.
Apple will save on high taxes imposed on the import of fully built devices by expanding local assembly, as well as meet local sourcing norms, for opening its retail stores in India. Millions in India desire Apple’s devices, but the premium price has limited its market share to a meager 1 percent gain in comparison to rival companies like One Plus.
Apple Manufacturers in India
It was previously reported that in this year assembling of the iPhone X family would start in India by Hon Hai Precision Industry Co, also known as Foxconn. In India through Wistron Corp’s local unit in the tech hub of Bengaluru, it also assembles the lower-cost SE, 6S and 7 models for Cupertino, California-headquartered Apple.
Rushabh Doshi, a research director at tech consultancy Canalys, said: “Local production will give Apple the leeway to play with the margins of their distributors and indirectly price their phones lower.”
Indian Government expanding the Growth of smartphone giants
The Indian government has tried to position South Asia’s third-biggest economy as a hub for smartphone manufacturing, encouraging global players with access to a market with over a billion wireless connections and cheap labor.
This initiative seems to be successful as the global smartphone giants including Samsung and Oppo have expanded rapidly in India, and contract Manufacturers like Foxconn have increased domestic operations.
Companies such as Apple could use India as an export hub beyond just fulfilling the local market. Although, few of Wistron assembled iPhone 6s and 7 are already being distributed from India to markets in Europe.