In wake of the “Make In India” campaign and the recent anti-China sentiments in India, Apple has decided to manufacture its flagship locally in India. Apple has not been very popular with iPhones in India, but considering its market value it has maintained its steady sale even during the pandemic.
As we know, the Indian Government has raised the GST prices for smartphones and gadgets imported directly to the country, it has also subsidized manufacturing in India, giving more incentives to the companies manufacturing locally. Banking upon this, Apple has decided to expand its manufacturing capacity. It will also start producing its Flagship device the iPhone 11 in the Foxconn’s facility near Chennai.
Apple had started local manufacturing in India with the iPhone SE and iPhone XR. Westron which started production of iPhone in 2017 in the Bangalore plant is already in expansion mode.
While, Foxconn which is a contract manufacturer for Apple, has a production facility near Chennai and will invest $1 billion to expand its factory in Chennai, over three years. During the company’s AGM in June, Liu Young-Way, Chairman of Foxconn, said, “We are fully pushing ahead with next steps there (in India), and maybe in a few months we can reveal on our website the next steps and report back to everyone. We’ll have a further investment there.”
Apple is also looking forward to diversifying its production lineup away from China and not just rely on a single country for its future products. Also, the prices of iPhones 11 will go down as it will directly cut high import charges. The prices may soon fall after the newly made stock becomes available for purchase.
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