Apple seems to have turned the wheel towards India as its Foxconn partner plans to invest $ 1 billion in India. The Taiwanese multinational contract maker looks forward to expanding its already operational facility in Tamil Nadu. This is trying to increase capacity and divert production from China as previously planned.
According to his report Reuters, the plan is to remove part of the iPhone production from China. The move comes after the long-running trade war between the US and China. Add to that, the coronavirus had made things worse by disrupting the supply chain.
More iPhone models will be assembled in India
Sources told Reuters that “Apple has strongly urged its customers to move some of its iPhone production outside of China.” After that, Foxconn’s $ 1 billion investment in its Sriperambudur plant. Located 50 miles west of Chennai, it is ready for a period of three years to expand its production facilities.
One of the sources also seems to have pointed out that the investment will increase employment opportunities by 6,000. If we recall, Foxconn President Liu Young-way said last month that the company would increase production in India.
However, at the request of Reuters, Apple has not yet officially commented on the matter and Foxconn declined to comment on behalf of its customers. In addition, the sources also said that the move will allow Foxconn and Apple to start assembling other iPhone models besides iPhone XR, SE in the future as well.
Apple in India so far and the future
Apple, despite being a leading brand, only sells SEs and key variants of its iPhones such as the XR, XI, at competitive prices. It is often with import duties for its higher variants. And that has hindered sales in some areas to a greater extent.
Therefore, the company represents only about 1% -2% of smartphones sold in India. This is despite the fact that it holds a large market share at 62.7% of the premium market (from the first quarter of 2020). This is due to intense competition from competitors such as Samsung, OnePlus and Xiaomi. Chinese companies often give more value for money devices to customers at cheaper prices.
That said, the latest investment comes as an addition to its already confirmed plans. opening Apple stores in India. Although it is a long-term plan, Apple has set a precedent that it will certainly not lose the second largest market in the world.