iPhone maker Foxconn to build first Apple plant in India

[agamdilawari]

Foxconn Technology is in talks to manufacture Apple's iPhone in India, government officials said, in a move that could lower prices in the world's No. 3 smartphone market where the US firm trails Samsung Electronics and local players.

India could help Foxconn mitigate accelerating wage inflation in China, where it makes the majority of iPhones, and base production sites closer to markets where its key clients want to grow.

Lower production costs could also help Foxconn keep hold of Apple orders amid intensifying competition with nimble manufacturing rivals such as Quanta Computer Inc.

"Foxconn is sending a delegation of their officers to scout for locations in a month's time," Subhash Desai, industries minister of Maharashtra, told Reuters.

Foxconn has said it is aiming to develop 10-12 facilities in India, including factories and data centres, by 2020, but had given no detail.

The Taiwan-based tech giant, the world's largest contract maker of electronic products, declined to comment on detailed plans on Thursday, citing commercial sensitivity.

Desai said Foxconn had yet to make any firm commitment, but he said the group was looking to manufacture iPhones, iPads and iPods, both for domestic as well as global sales.

Apple representatives in India did not respond to a request for comment on Thursday.

Apple's iPhone 6 with 16 GB sells for around Rs 44,000 ($687.82) in India, versus Samsung's Galaxy S6 with 32 GB which sells for around Rs 40,000 ($625.29).

It has 10% market share in India, trailing Samsung and local manufacturers such as Micromax, which dominate the market, according to Counterpoint Research Market Monitor.

Make in India

India, under Prime Minister Narendra Modi, has sought to reboot manufacturing, but the country is yet to rival China, particularly in technology where most factories will likely be assembly units to begin with.

But local businessmen are betting that as global companies invest in the country, suppliers will follow.

A lack of good infrastructure and suppliers are the biggest hurdles to making technology products in the country, forcing most of India's more than 100 different phone companies to get their products from the mature markets of China and Taiwan.

Apple is among the biggest clients for Foxconn -- the trade name for Hon Hai Precision Industry Co Ltd -- which also makes components for companies such as Xiaomi, Acer and Sony.

"The smartphone boom in India indicates the time is just right to focus on expansion plans and increasing volume in India to a comparable level with the China market in the next five years," said Sky Li, vice president of phone manufacturer OPPO.

India has the second-highest number of mobile phone accounts behind China. According to networking solutions company Cisco Systems, there will be 650 million smartphones in the country by 2019. The number of tablets will rise 9% to 18.7 million by then.

iPhone maker Foxconn to build first Apple plant in India

 

[dray]

We should give them all the support they need, this will help create the much needed base for electronics manufacturing and create the right environment for other major players to join in.

 

[ruby007]

Atleast now wi;; they provide Iphone in contracts in India ???

 

[PatriotLover]

I hope they dont install anti suicide nets in India factories

 

[Nicky G]

Good development, set these up, particularly in BJP states. They have the best record for support to business.

On the other hand, Chinese workers are facing a double whammy from jobs migrating to other countries due to wage inflation and technology plus automation rendering them obsolete and thus redundant.

The current political system has survived only due to growth. As the economy slows down, unrest will become inevitable.

I hope they dont install anti suicide nets in India factories

That can only happen in communist dictatorships with no law to speak of. In a democracy such as India, even is the government did not wish to do anything, the media would make so much noise and someone would file a PIL and get the thing shut down.