Foxconn Looking to Set Up an iPhone Assembly Plant in India

In a bid to reduce its reliance on China, Foxconn is reportedly considering moving some iPhone manufacturing to India so as to diversify its supply-chain resources. Foxconn is Apple’s largest assembler and it assembles a lot of its products including iPhones, MacBooks, iPads, and more.

The Chinese company has multiple factories spread across China and other neighboring regions nearby. It does have a smartphone assembling factory in India but it assembles smartphones for OnePlus and other Android OEMs there. Due to the ongoing trade war between China and the U.S., Foxconn is looking to diversify its supply-chain resources and is considering setting up an iPhone assembly plant in India.

Executives at Foxconn, a contract manufacturer that assembles a large portion of the world’s iPhones in China, are studying whether to include an India project in budget plans, one of the people said. Senior executives, possibly including Chairman Terry Gou, plan to visit India.

Another key Apple supplier Wistron already has an iPhone assembly unit in India where it assembles old iPhones like the iPhone SE and iPhone 6s. However, due to the lack of relevant supply chain though, Wistron has been unable to assemble high-end iPhones in India.

Apple is looking to change that as it is having to pay a very high import tax and customs duties on high-end iPhones which ends up pushing their price tag to unreasonable levels. This has made buying an iPhone in India a very unattractive proposition which explains the 50 percent decline in iPhone shipments in the country in 2018.

By assembling iPhones locally in India, Apple will be able to get a noticeable reduction in customs duties which will allow it to lower iPhone prices in India. Apart from diversifying Foxconn’s resources, the move will also help Apple in regaining some of its lost market share in India.

[Via WSJ]