iPhone X Production to Start From July in India, Followed by More Premium Models; Why Is Apple Shifting Its Manufacturing to Other Regions?
While there were conflicting reports of premium Apple iPhone models being locally manufactured in India, the latest info sums up that the plan is ready to execute in a couple of months. The first premium model that’s expected to go through the production line is the iPhone X, with additional details stating that more premium models will be locally manufactured in the region as well.
Apple Partner Foxconn to Commence Commercial Production of iPhone X Using a 160-Acre Factory
According to the latest report from Economic Times, volume production is set to begin from July, with Apple’s long-time partner Foxconn commencing operations from its 160-acre factory in Chennai, according to the sources privy to this information. However, the plan isn’t to just stop at the iPhone X as the report states that production capacity is expected to step up and expand to higher models going forward. This means that we might get to see the iPhone XR, iPhone XS Max, and iPhone XR manufactured locally. While the following has not been confirmed, it is possible that a small percentage of Apple’s 2019 lineup is produced in India as well.
Apple has not commented if local production of premium iPhone models will grant Indian customers more savings when they purchase an iPhone X as opposed to the market prices at this current time. As of right now, Apple’s focus was plainly on lower-cost models such as the iPhone SE, which is targeted to emerging markets, the iPhone 6s and more recently, the iPhone 7. All of the aforementioned models, with the exception of the iPhone X, aren’t recent, and looking at Apple’s market share in India and comparing it to the likes of Samsung, and Xiaomi, one would wonder why Apple would choose India as an alternate manufacturing ground besides China.
It is possible that after the U.S. trade war with China, which looked like it might have sent tariffs on U.S. imports from China as high as 25 percent, Apple was looking for a second location. India also has the second-highest population in the world and is the second-largest smartphone market in terms of volume, which might have encouraged Apple to set up shop there as it will have near-limited low-cost labor opportunities there and a chance to increase its market share. While the political situation between the U.S. and China has settled down, Apple will no doubt be on its feet, ready to put its contingency plan in full swing.
Also, according to 9to5Mac, if Apple completes its requirement of locally manufacturing 30 percent of products, it may even get government clearance to open Apple Stores in the country, something which can boost local demand. All of these point to why India holds revenue-generating potential for Apple, and we’ll see in the coming months if the iPhone X local production truly improves the situation for the company there.
Source: Economic Times