Want to share with your friends too?

Business
11 Apr 2019

Apple to manufacture iPhone X in India from July: Report

Apple to manufacture iPhone X in India soon

Apple will start the commercial production of iPhone X in India from July, according to The Economic Times.

The report said that Foxconn, a Taiwan-based contract manufacturer, will make the premium iPhone model for the Cupertino giant from its Chennai-based factory.

This development comes days after Apple started producing iPhone 7 at the Wistron plant in Bengaluru.

Here's more on this matter.

In context

Apple to manufacture iPhone X in India soon
Manufacturing output to depend on favorable incentive regime

Make in India

Manufacturing output to depend on favorable incentive regime

"Foxconn will begin with the iPhone X (range) from the Chennai plant. The plans are to step up production capacity and diversify to even higher models going forward," said an official familiar with the matter.

He added that the "sustained increase in manufacturing will depend on, among other factors, the continuation of a favorable incentive regime into the next government."

Portfolio

Presently, Apple manufactures three iPhones in India

Apple is keen on expanding its portfolio of 'Made in India' products. iPhone X will be the fourth model to be produced locally after the iPhone 7, iPhone 6s and iPhone SE.

Notably, the cost of making iPhones in India is cheaper than importing them, given the attractive duty concessions offered by the government to bolster local manufacturing under 'Make in India' initiative.

Love Business news?

Stay updated with the latest happenings.

Notify Me

However, cheaper production costs may not translate to lower price

Strategy

However, cheaper production costs may not translate to lower price

While locally manufacturing iPhones in India will be cheaper for Apple, it may not translate to lower price tags.

In fact, with higher margins, the company might use the funds for market development purposes.

Importantly, with respect to iPhone X, a reduced price tag will pit it against the lower-cost iPhone Xr flagship which has just received a massive price cut in India.

Global concerns

Why is India important for Apple's success?

Apple has been shaken by poor demand for its iPhones. Since 2014, the trillion-dollar company recorded its weakest year in 2018.

Hence, in 2019, when trade-wars dominated US-China relations, the Cupertino giant may be looking at India more like a manufacturing and export hub.

Further, in India's fast-growing smartphone market, Apple has lost 50% market value year-on-year (2017-18) to competitors like OnePlus and Xiaomi.

Ask NewsBytes
User Image

Next Timeline