Apple Will Start Production in India: iPhone to Become Cheap In India

Apple and all major brands have faced leaks of there products before launch. Apple thinks that the answer is to go a bit away from the ecosystem of California, which has high leaks. The solution is to take there production to India. Moreover due to bad government policies Apple’s products sell at really high rates in India. Due to charges on products manufactured outside India. This can help Apple tap one of the biggest, fastest growing market. Also it has the most potential. Foxconn will invest Rs 2500 crore ($356 million) to expand the plant, including investment in iPhone production and ​the investment may create as many as 25,000 jobs. The work will take place at Foxconn’s plant in Sriperumbudur town in the southern state of Tamil Nadu.  Foxconn which is a Taiwanese Company, and is the Orignal Equipment Manufacturer for Apple products,  has to put in amounts as large as $356 Million for starting production in India. Moreover this will also reduce overall manufacturing cost in India, as India has comparatively cheaper labour available. India has lot of demand for cost effective phones, that has given boom to brands like, Xiaomi. And Apple earns really a major portion from lower end sales, like iPhone SE, or iPhone 8. They can produce iPhone X, in India, which will help Apple make it available at lesser prices, thus boosting up there sales. For Apple, widening assembly beyond China is critical to mitigate the risks of the Sino-U.S. trade war. Foxconn, the world’s biggest electronics contract manufacturer, is considering setting up a factory in Vietnam, Vietnamese state media reported this month. If that goes ahead, it will be one of the biggest recent steps by a major company to secure an additional production base outside of China. Foxconn has previously admitted the China-U.S. trade spat was its biggest challenge and that its senior executives were making plans to counter the impact.
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Aditya Agarwal

Aditya Agarwal

Indefinite Thinker Infinite Player 5th October, 2019

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