“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.
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