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Following the iPhone SE and iPhone 6s, Apple will begin assembling its high-end iPhones in India sometime in 2019, according to a new report today by Reuters. Instead of Wistron, Foxconn will build the high-end iPhones, and these models are said to be the most expensive flagship devices offered by Apple, including the iPhone X family.

apple-india.jpg

Local sources state that the work will occur in Foxconn's plant in Sriperumbudur town in the southern state of Tamil Nadu. Foxconn will reportedly invest 25 billion Indian rupees ($356 million) to expand the plant, part of which will be focused on the production of the flagship iPhones in India. The investment is estimated to create as many as 25,000 jobs. The report doesn't say whether these high-end iPhones will be sold in the Indian market or elsewhere in the world.

Earlier this year, Apple revamped its India strategy in order to stay afloat in the country's smartphone market. This revamped strategy includes better and longer-lasting retail deals with higher sales targets, the debut of official Apple retail stores in India, an overhaul of the company's relationship with independent retailers, and improving apps and services for local users. This is said to include a new version of Apple Maps aimed at Indian users to launch by 2020.

The expansion of high-end iPhone assembly outside of China could also be an attempt by Apple to "limit the impact" of a trade war between the United States and China:
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. "Widening iPhone manufacturing in India through Foxconn will allow Apple to hedge the risk of any new U.S. trade policies," said Navkendar Singh, an associate research director at International Data Corporation.
Still, the company has struggled in the country due to the high price of its iPhones. Just last week, The Wall Street Journal published a report about Apple's iPhone sales in India. According to the paper, Apple has had "little success so far" in terms of growth in India, due to the price-sensitive market that has more than 75 percent of smartphones priced below $250.

Article Link: Apple Partnering With Foxconn to Build High-End iPhone Models in India Next Year
 
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mtneer

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Sep 15, 2012
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Unless the whole electronics ecosystem moves out of China - this plant will just assemble subcomponents shipped in from China anyway (the chassis, RAM modules, PCB's etc.)
 
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whyamihere

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Jun 30, 2008
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Surprising. Thought they'd be pulling out rather than doubling-down on India after all the shenanigans and low sales there.
 
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Ramchi

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Dec 13, 2007
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Probably a good idea to generally diversify manufacturing away from a single authoritarian country.
Believe me democracy is worse where corruption is distributed and you need to satisfy all stakeholders, most likely bribing them with huge money or stakes. Authoritarian rule is better for compliance since you just need to deal with one guy.

The place in which Foxconn planning to operate marred with union strikes when Nokia mobiles were made, huge Tax evasion litigation is also going on.
 
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Ramchi

macrumors 65816
Dec 13, 2007
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India
Surprising. Thought they'd be pulling out rather than doubling-down on India after all the shenanigans and low sales there.
Huge potential if Apple can match the prices of Note 9 512 GB. Believe me, it will wipe out competition in a short time.
[doublepost=1545926670][/doublepost]
What city is that if I may ask?
Chennai
 
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JosephAW

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May 14, 2012
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Yeah it's a shame American consumers can't purchase an iPhone from the country of their choice. We are forced to buy from china where they embed those little server chips in their devices like Huawei phones and more secretly in iOS devices. I would assume the India iPhone don't have this "extra" feature unless the chips still come from china.
 
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decafjava

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Feb 7, 2011
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Yeah it's a shame American consumers can't purchase an iPhone from the country of their choice. We are forced to buy from china where they embed those little server chips in their devices like Huawei phones and more secretly in iOS devices. I would assume the India iPhone don't have this "extra" feature unless the chips still come from china.
Do you have any proof of this statement?
 
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Sasparilla

macrumors 68000
Jul 6, 2012
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>> The expansion of high-end iPhone assembly outside of China could also be an attempt by Apple to "limit the impact" of a trade war between the United States and China <<

India has high tariff's on electronics goods (like smartphones that aren't final assembled there), so rather than a hedge with China this is probably a way to bring the prices of Apple's high end smartphones down for retail in India (because the Indian government slaps tarrifs on them currently since they're not final assembled there). Guessing this will be local final assembly as opposed to final assembly for the world.

The same reason they started doing local final assembly of some of their lower cost phones there previously - India's tariffs. JMHO...
 
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Ramchi

macrumors 65816
Dec 13, 2007
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>> The expansion of high-end iPhone assembly outside of China could also be an attempt by Apple to "limit the impact" of a trade war between the United States and China <<

India has high tariff's on electronics goods (like smartphones that aren't final assembled there), so rather than a hedge with China this is probably a way to bring the prices of Apple's high end smartphones down for retail in India (because the Indian government slaps tarrifs on them currently since they're not final assembled there). Guessing this will be local final assembly as opposed to final assembly for the world.

The same reason they started doing local final assembly of some of their lower cost phones there previously - India's tariffs. JMHO...



Do you get paid to do this pat?

Samsung does this and offering their flagships cheaper than global market rates. This means you will get Note 9 512 GB and iPhone XS Max 512 GB can be comparatively priced. No Guesses, who will eat the market for breakfast....of the other!
 
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dumastudetto

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Aug 28, 2013
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Most expensive iPhone ever offered? Good lord, are we heading toward $1500 phones or something?

If we want Apple to continue driving forward with real product innovation, we all have to be prepared to be a bit more for our technology.
 
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Mindcrime

macrumors regular
Oct 24, 2003
134
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Houston, Texas
My company (HP) has a big presence in India - it's a great country, but holy hell getting electronics in out of customs is a world class headache. There are regulations in India for electronics that are extreme.

Also, we have to build special ruggedness platforms to account for the Indian environment. Failure rate there is astronomical thanks to humidity and dust (and dust and dust and dust).
 
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rmoliv

macrumors 65832
Dec 20, 2017
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Please remove the "Assembled in" tagline as you did in the U.S. No one wants to be remembered their expensive phones were made in those countries.
 
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Since1987

macrumors regular
Feb 23, 2016
188
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If we want Apple to continue driving forward with real product innovation, we all have to be prepared to be a bit more for our technology.

The last "real product innovation" from Apple was when they added GPS to the iPhone. Since then it's all been pointless BS for Twitter and Facebook chumps, er... users.
 
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az431

Suspended
Sep 13, 2008
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Portland, OR
Most expensive iPhone ever offered? Good lord, are we heading toward $1500 phones or something?

Yes, it's called inflation, which has averaged 3.2% since 1913.

In 2006, the least expensive MacBook Pro sold for $1999, which is $2,540 in 2018 dollars.
[doublepost=1545930226][/doublepost]
The last "real product innovation" from Apple was when they added GPS to the iPhone. Since then it's all been pointless BS for Twitter and Facebook chumps, er... users.

Thank you for the insight Mr. Ballmer.
 
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Infinite Vortex

macrumors 6502
Mar 6, 2015
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India has high tariff's on electronics goods (like smartphones that aren't final assembled there), so rather than a hedge with China this is probably a way to bring the prices of Apple's high end smartphones down for retail in India (because the Indian government slaps tarrifs on them currently since they're not final assembled there). Guessing this will be local final assembly as opposed to final assembly for the world.

That makes sense so long as local demand for iPhones in India is reasonably balanced with production of iPhones in India. The imbalance can only be in one direction, more production than local sales, in which case it would in fact be a hedge against China. At which point the global supply chain and cost of the global supply chain is altered.

It will be interesting how this plays out as the cost of any production/assembly surely isn't negligible and as such would need to be significantly lower than any tariffs that would otherwise be applied. At the end of the day, if it were more cost effective to make iPhones in India than China then you would already be doing it and this, presumably, would affect pricing in other regions.
 
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