With Apple iPhone sales declining continuously in India, the Cupertino-based iPhone maker is now seeking help from Taiwanese chip manufacturer Foxconn to start mass production of iPhones in the country to revive its sales.
Price is also a main reason for dip in India sales. Apple earlier said that its customers hold on to their phones for a longer period as iPhones last longer, which clearly indicates that customers aren't as willing to upgrade as they once were when these smartphones were in their reach.
According to a report by Bloomberg, Prime Minister Narendra Modi has invited Foxconn Technology Group Chairman Terry Gou in India to devise a strategy for the company's expansion. Apple produces older iPhone models in Bengaluru via a partnership with Wistron. The facility recently started producing iPhone 7 locally.
With Foxconn, Apple aims to manufacture newer iPhone models in India.
‘In the future, we will play a very important role in India's smartphone industry. We have moved our production lines there,’ the media reported Gou as saying at an event in Taiwan.
Foxconn will soon start a trial run for producing new iPhones models soon. Apple has always struggled to capture a major market share in the country, but has failed tremendously owing to the sky-high iPhone prices and the availability of cheap alternatives from the competing OEMs.
With the local manufacturing in place, Apple would be able to reduce import duties by 20 per cent, meaning the iPhone XS and XR could become more affordable. According to the Bloomberg report, Foxconn will initially invest $300 million.
By shifting the production from China to India, it is clear that Apple is betting big in India.