iPhone Assembler Foxconn Looks to India to Diversify Supply Chain Away From China

Discussion in 'iOS Blog Discussion' started by MacRumors, Jan 22, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    A larger portion of the world's iPhones could one day be manufactured in India, if a new report by the Wall Street Journal proves accurate.

    According to Tuesday's report, Apple's main iPhone assembler Foxconn is considering building 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 currently manufactures most of its iPhones through Foxconn, but the latter's potential new project in India points to Apple's vulnerability to rising U.S.-China tensions over trade and technology. Both Apple and Foxconn declined to comment on today's report, but it is thought that manufacturing iPhones in India could help Apple lower prices by allowing it to avoid a tariff that adds 20 percent to devices imported from China.

    Foxconn already has plants in India, and late last year it was reported that the firm would invest around $356 million to expand its facilities there to begin assembling Apple's high-end iPhones. Wistron assembles iPhone SE and iPhone 6s models in India exclusively for the Indian market, but the December report didn't say whether the high-end iPhones assembled by Foxconn would be sold in the country or elsewhere in the world.

    Early last year, Apple revamped its India strategy in order to stay afloat in the country's smartphone market. This strategy includes better and longer-lasting retail deals with higher sales targets, the debut of official Apple retail stores in India, and an overhaul of the company's relationship with independent retailers.

    Just one in four Indians own a smartphone, providing Apple with an opportunity to sell iPhones to millions of new customers in the country. However, Apple is said to have seen little success so far, with Apple's market share in the country dropping to about one percent in 2018, from about two percent the previous year.

    Article Link: iPhone Assembler Foxconn Looks to India to Diversify Supply Chain Away From China
  2. Ramchi macrumors 6502a


    Dec 13, 2007
    and hope this has nothing to do with Samsung's threat to stop and move manufacturing out of India:)!
  3. magicschoolbus macrumors 65816


    May 27, 2014
    It’s about time we trade with partners that do not want to replace America on the world stage, steal tech from private corporations, declare economic warfare on the US, and are allies and partners of the United States.
  4. 69Mustang macrumors 604


    Jan 7, 2014
    In between a rock and a hard place
    Confused. What exactly are you talking about? What trade partners? This is about Foxconn/Apple diversifying their supply chain, not US/India relations. It's not like either company is abandoning their Chinese operations.
  5. radiology macrumors 6502


    Feb 11, 2014
    Westlake, OH
    Apple should invest in central and South America. Plenty of opportunities to have great deals (labor is cheap) and help the region to develop economically.
  6. adamjackson macrumors 68000

    Jul 9, 2008
    Wouldn't this also help Apple with iPhone Sales in India or does that also require the company be headquartered in India? I've lost track but I thought goods manufactured in India have a lower tariff if they are to be sold in India.
  7. Kaibelf Suspended


    Apr 29, 2009
    Silicon Valley, CA
    There is far less return in the long run if they do that. Where should they set up production?
  8. usarioclave macrumors 65816

    Sep 26, 2003
    There's too much political risk in Latin America.
  9. Fender2112 macrumors 65816


    Aug 11, 2002
    Charlotte, NC
    That's a nice way to put it.
  10. aakshey macrumors 68000


    Jun 13, 2016
    Yes. This will likely reduce iPhone prices in India.
  11. Eorlas macrumors 6502a

    Feb 10, 2010
    The tech stealing was proven to be false claim?

    I'm sure the trade war is not a one-sided affair
  12. MoreRumors? macrumors 6502a

    Feb 28, 2018
    Tim's eyeglass lens
    It would be a good move to expand the facility in India. Creating more jobs will mean more people with income and maybe increasing sale of iPhones.
  13. radiology macrumors 6502


    Feb 11, 2014
    Westlake, OH
    No political risk in China and India, right?
    --- Post Merged, Jan 22, 2019 ---
    Chile and Brazil would be two good options to start.
  14. 4tune8chance macrumors member

    Dec 6, 2012
    Brisbane, Australia
    More importantly, your dealing with a country that is actually trustworthy as opposed to China.
  15. fumi2014 macrumors regular

    May 21, 2014
    I agree, South America would be a good start.

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14 January 22, 2019