“Foxconn Technology Group is within weeks of starting trial production of the latest iPhones in India as Apple Inc. seeks to revive its fortunes in the country, people familiar with the matter said,” Saritha Rai reports for Bloomberg. “The trial run of the iPhone X range of devices would come before Foxconn starts full-scale assembly at its factory outside the southern city of Chennai, the people said, asking not to be identified as the plans are private. ”

“Production in India would help the Cupertino, California-based company avoid import duties of 20 percent and also meet the 30 percent local sourcing rule that would allow it to open its own stores in the country,” Rai reports. “Indians bought more than 140 million smartphones last year, with just 1.7 million sold by Apple, as consumers favored cheaper models from China. On Xiaomi Corp.’s Indian website, the Redmi Note 7 has a price of 9,999 rupees ($143), which is a 10th the price of Apple’s iPhone Xs in the country.”

MacDailyNews Take: As ever, you get what you pay for.


 

“The Indian assembly line of Foxconn’s Hon Hai Precision Industry Co. would serve local and export markets by the time Apple announces its next iPhone models in September, the people familiar said. The Taiwanese contract manufacturer, the biggest maker of iPhones, will initially invest about $300 million to set up for Apple with investments to ramp up as capacity expands, they said,” Rai reports. “Foxconn has two assembly sites in the southern states of Andhra Pradesh and Tamil Nadu, where it makes devices for Xiaomi and Nokia.”

Read more in the full article here.

MacDailyNews Take: Finally.

It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket.

SEE ALSO:
Apple to pull iPhone 6 and 6 Plus models, raise entry prices in sharp India reset – March 14, 2019
Apple, other phone makers seek export incentives and tariff cuts to grow India production – January 25, 2019
Apple to meet with Indian government in Davos to discuss manufacturing in India – December 21, 2018
Apple struggles with iPhone sales in India, the world’s largest untapped market – December 18, 2018
No one wants a ‘cheap’ iPhone: Apple sells premium products – December 10, 2018
Apple appoints Nokia veteran Ashish Chowdhary to lead India operations – November 13, 2018
Here’s Apple’s plan to stop losing in the world’s fastest-growing smartphone market – August 6, 2018
Apple sales execs depart as company flounders in India – July 16, 2018
Made-in-India iPhone 6s production underway as Apple looks to avoid Indian import tax – June 26, 2018
Apple ups iPhone prices in India as government hikes taxes on imported phones – December 18, 2017
India raises import tax on electronic products, including cellphones; move to hurt Apple – December 15, 2017
Apple slashes prices of iPhone 7, iPhone 7 plus, iPhone 6s in India – September 14, 2017
Apple seeks tax breaks for suppliers to make iPhones in India – August 1, 2017
Indian Prime Minister Modi meets with Apple CEO Cook ahead of President Trump today – June 26, 2017
Apple broadens their iPhone attack in India, the world’s second biggest mobile market – June 22, 2017
Apple is making old iPhones new again to win India – June 12, 201
Apple again asks Indian government to allow sale of certified refurbished iPhones in India – February 6, 2017
Indian IT minister says Apple plans to make iPhones in Bengaluru – February 3, 2017
Apple nears deal to manufacture products in India – January 25, 2017
Apple is ready to make iPhones in India, for a price – January 20, 2017
India to consider Apple request for tax breaks and policy exemptions with ‘open mind’ – January 18, 2017
Apple is horse-trading mightily with India – January 4, 2017
Apple appoints veteran executive to revive sluggish India sales as supply issues hamper iPhone X launch – December 19, 2017