Foxconn is eyeing to open its first Apple iPhone plant in India, as per a latest report from Reuters. The Apple manufacturing partner Foxconn is reportedly in talks with the Indian government officials for the same.
In addition to iPhones, Foxconn is also said to be looking to build iPads and iPods in India, for both local and international sales, added the report. The company is reportedly planning to establish 10-12 facilities in India including factories and data centers by 2020. “Foxconn is sending a delegation of their officers to scout for locations in a month’s time,” Subhash Desai, Industries Minister of India’s western state Maharashtra, told the publication.
Inception of an assembly plant in India would allow Apple and Foxconn to benefit from lower production costs in India as wages continue to increase in China. Currently, Apple has 10% of the market share in the country but its sales more than doubled last year at 55%. Apple has been aggressively marketing in India with print and television advertisements. But, most importantly an array of EMI, cash back and buyback schemes, trial offers have acted as a catalyst for increasing sales in the country. The company clocked $1 billion in revenues for FY 2014-15 in India.
If Foxconn does start making iOS devices in the country, Apple may be able to reduce prices of its handsets and increase its presence in the rapidly growing smartphone market. This will eventually allow Apple to compete with strong smartphone players in India including Samsung, Xiaomi and Micromax.
Foxconn previously operated a plant in India for Nokia’s devices division before it was acquired by Microsoft. It must be noted that neither Foxconn nor Apple have officially commented on this latest initiative.