- Foxconn Technology is in talks to manufacture Apple’s iPhone in India. 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 aiming to develop 10-12 facilities in India, including factories and data centres, by 2020.
- Apple has 10 per cent market share in India, trailing Samsung and local manufacturers such as Micromax, which dominate the market.
Make in India:
- A return of Foxconn has forced to shut up shop in India last year after client Nokia closed it is a major victory for India, which badly needs to turn its tech boom into a manufacturing and employment boost.
- 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.
- PM 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.
- 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 per cent to 18.7 million by then.