Foxconn to Begin Production on iPhone X in India This July

[MacRumors]

Foxconn is set to begin production of the iPhone X in India this July, according to a report by The Economic Times. Production will take place at Foxconn's Chennai plant in eastern India.

According to an official with knowledge of the company's plans, Foxconn hopes to step up production capacity and "diversify to even higher models going forward." Today's report sees Foxconn's plans to move some of its production outside of China begin to take shape, following the manufacturer's trial production of the iPhone X earlier this month.

News about Foxconn's plans to produce high-end iPhones in India emerged late last year. According to a Reuters report, Foxconn invested $356 million to expand an existing plant and take on the new iPhone production, creating as many as 25,000 jobs in the process.

Foxconn has been considering expanding its production plants in India as a way to diversify its supply chain away from China, where most of the Taiwan-based firm's facilities currently reside. Apple manufactures most of its iPhones through Foxconn, but the latter's growing India base provides security in the face of Apple's vulnerability to rising U.S.-China tensions over trade and technology.

Previously, Apple partnered with Wistron to produce iPhones in India, including the iPhone SE and iPhone 6s. When building iPhones in India, Apple is able to avoid import duties placed on imported smartphones and their components. More production in the country also helps Apple meet India's 30 percent local sourcing requirement that would allow Apple to open its own local retail stores.

Production of the iPhone X family in India appears to be part of Apple's revamped India strategy, which also includes better and longer-lasting retail deals with higher sales targets, the opening of official Apple retail stores in India, "overhauling" the company's relationship with independent retailers, and improving apps and services "aimed more closely at Indians." Due to the high price of iPhones in India, and other reasons, Apple has continually struggled in the country, leading to the new strategy.

Article Link: Foxconn to Begin Production on iPhone X in India This July

 

[magicschoolbus]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

 

[Baymowe335]

The Indian market is important for Apple.

 

[Jsameds]

I thought iPhone X was discontinued?

 

[ROGmaster]

It will probably be manufactured and sold only in India for a cheaper price.
Interesting strategy, it looks like Apple does put in a little extra effort when they have no other choice.

 

[Scotty2Hotty]

Welcome back Fall 2017. We've missed you.

 

[rockarollr]

Hopefully this means Apple will be supporting the iPhone X well into the future. I don’t plan on upgrading my $1200 phone any time soon. It already does more than I need it to do. It also won’t be completely paid off until this coming November.

This appears to be somewhat good news for everyone still holding onto (and still paying for) their “original” iPhone X.

 

[Andres Cantu]

How many X units are they expecting to sell in India if even the cheaper XR isn’t selling over there? Hard to believe than an OLED iPhone would be any cheaper than the XR.

 

[69Mustang]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

I think it's pricing and strategy. It's easy to say the pricing is too high for the market, cuz it is. Even Cook says so. Apple's gradually lowering pricing to help address the issue. The strategy issue was Apple's biggest misstep in my opinion. They approached India with the same strategy they'd approach any other market. Basically, "we're Apple and we want to do A, B, and C so we're going to need you to do X, Y, and Z so we can get this ball rollin' P, D, and Q. India said: 1. Kick rocks. 2. You will be required to do what all other foreign vendors are required to do or 3. see 1.

Instead of going against the grain and trying to do things their way, Apple is now going with the grain. I think the goal is to position itself to get Apple store in India. To do that, they're going to have to toe the line

 

[ROGmaster]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

Well the iPhone Xs is around 30% more expensive than the newly launched Galaxy S10 Plus in India.
And the Galaxy S10 Plus actually competes with the Xs Max which is almost 40% more expensive.
It looks like Indians are voting with their wallets.
( I took the prices from Flipkart)

 

[Pearple]

Nobody wants an X, Timmy, when they can have an Xs.

Better start producing the 128GB SE again!

 

[Canezmd]

Wait.... so they can build an iphone in India, but not in the United States???

 

[Khedron]

Tim is absolutely desperate to not spend a single cent on a new design.

 

[GuruZac]

Why don’t they build iPhone XR in India at an even lower price point?

 

[Khedron]

I thought iPhone X was discontinued?

Tim never discontinues a product until every part in their warehouse is used up and the tooling to produce them is worn out.

 

[69Mustang]

Wait.... so they can build an iphone in India, but not in the United States???

Why would Apple go through the expense of building here when they can continue to build cheaper outside of the US? It's not like any Apple customers here are going to object or anything. I mean, a few might shake a fist or two. But by and large, most Apple customers are going to continue doing what they've always done... buying Apple products. Country of origin tends to only matter as a talking point. Profits before patriotism. Apple is a business.

 

[EvilEvil]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

It's a 3rd world country. Only the uber rich can afford iPhones there.

 

[kshitijshah]

Hopefully next step should be launching Apple Stores in India. The APple service in India is just pathetic compared to what Apple Stores offer.

 

[lenard]

Great to see them getting into the Indian market for production, the China market is unpredictable in many aspects.
Also China needs to see that its not the only place an iPhone can be produced....

 

[Infinite Vortex]

I don't understand why Apple fails in the India market at all.. is it their prices?

You just need to look at the spec to price relationship of the Xiaomi Pocophone F1, for instance, and the reason will be self evident. India is a *very* price sensitive market and while Apple isn't about to significantly cheaper they'll continue to sell less than people have digits. iOS is not worth $US1700 whichever way you cut it. IMHO production in India, while reducing the final price significantly by negating steep taxes/duties, still won't be significant enough as Apple realistically needs an iPhone that competes in the $US300-400 price range. At a minimum, price-wise, Apple needs to be within touching distance of Samsung's M- and A- series phones to have a decent chance of market penetration.

 

[pika2000]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

You have to consider the way the Indian government put restrictions to imports. Basically if Apple doesn't want to have a lot of added tariffs, they have to manufacture their products locally. Samsung was also faced with the same thing, but they established their manufacturing in India way long time ago, they they always have a cost advantage.

Also, when Steve was around, it was clear that Apple put a lot of focus to China (by integrating a lot of Chinese-centric services into iOS and macOS) and close to neglect other Asian markets.

 

[citysnaps]

Tim never discontinues a product until every part in their warehouse is used up and the tooling to produce them is worn out.

Not true at all as "their warehouse" (meaning Apple's contract manufacturers warehouses) typically stocks parts that will be used in a day.

 

[ksec]

Does anyone know if this will lower the import tax and duty for iPhone sold in India? ( It is one of the reason why Apple's product in India are one of the most expensive in the world )

I am not well versed on the situation in India.

 

[pika2000]

Great to see them getting into the Indian market for production, the China market is unpredictable in many aspects.
Also China needs to see that its not the only place an iPhone can be produced....

But China has the manufacturing prowess. Those skills don't come overnight. Sure, you can established a factory anywhere, but to have the same quality of labor is completely a different story. This is why Apple started with older phones like the iPhone 6 in India. It will definitely take time for India to be able to output the same volume, speed, and quality, as the Chinese factories. But it's not a matter of if, just when.

 

[ilikewhey]

well apple do need new markets to keep it's sales # up, i guess this is the only way for apple to be allowed to open it's retail store and thus expanding its presence in an emerging market.