Two weeks ago we told you that Apple’s largest manufacturing partner Foxconn plans to invest the princely sum of $1 billion to increase the production of the iPhone in India. The latter is the second-largest smartphone market in the world after China, although it does remain a developing country. As a result, lower priced phones sell the best including Xiaomi’s value for money handsets and Samsung’s Galaxy A series. The iPhone? It’s considered a luxury item in the country.
Apple is producing the iPhone 11 in India
With U.S.-Chinese relations remaining poor, Apple is concerned that the U.S. might impose tariffs on the iPhone. A tariff is just a fancy name for an import tax and the Phase One agreement signed by both countries saved Chinese manufacturers (and companies that assemble their phones in China-like Apple) from having to eat a tax or pass it on to their customers in the form of higher prices. While moving some production out of China was a subject that Apple reportedly had on the table for some time, last year there were some reports stating that the tech giant was looking to move 20% of handset production out of China. India would be the obvious choice although there are questions about whether Apple can put together a supply chain that can provide it with parts in the quantity and quality that Apple needs. The second-largest iPhone assembler, Pegatron, will join Foxconn and
Wistron in India according to the latest rumors.
