Apple again rumored to manufacture iPhone in India
As Apple looks to break into India's burgeoning smartphone market, a report on Tuesday claims the company is in talks with Foxconn to potentially manufacture iPhone in the region.
Citing sources familiar with Apple's plans, The Economic Times reports the company is discussing the possibility of manufacturing a quantity of iPhone models at Foxconn's Indian facilities. While an exact timeline for the production shift has yet to be fleshed out, the report estimates the change might come in the next two to three years.
"There's definitely interest," said an unnamed source. "When Tim Cook was here, the government raised the issue of making in India. It is after that that Apple started thinking of doing something in India which is long term."
The report jibes with rumors earlier this year suggesting Foxconn plans to build a plant in India exclusively for Apple products.
Cheaper prices for locals, a faster time to market and another production hub are among the benefits of manufacturing in India. It might also give Apple an in to opening retail stores in the region.
The company has for years sought government approval to operate branded stores in India, but is continually stymied by foreign direct investment trade policies. India trade laws require single-brand stores to source at least 30 percent of goods from domestic suppliers, meaning Apple would have to be granted an exemption -- it was not -- or start producing its products in the region. There have been numerous reports indicating members of the Indian government, including the cabinet of Prime Minister Narendra Modi, are willing to work with Apple on a potential resolution, but an official agreement has yet to be announced.
In August, Commerce and Industry Minister Nirmala Sitharaman led a charge to reevaluate Apple's application for exemption, prompting the finance ministry to reportedly ratify a proposal that would allow single-brand retailers to operate brick-and-mortar stores as long as they are considered a provider of cutting-edge technology.
Perhaps looking to deliver evidence that Apple's presence would add value to the region, CEO Tim Cook visited India with a few key executives in May. The team met with local telecommunications companies to discuss iPhone partnerships, while Cook sat down with Modi to talk retail, manufacturing, encryption and more. The meetings came shortly before Apple announced plans to open a Maps development center in Hyderabad.
India represents a huge opportunity for Apple as iPhone sales plateau. As a premium brand, however, iPhone is slow to catch on in the developing market. Figures released by research firm Strategy Analytics last month show Apple's share of the Indian smartphone market fell 35 percent year-over-year to 2.4 percent during the quarter ending in June. Google's Android, by contrast, owned 97.1 percent of the market.
Despite Android's overwhelming domination of India's existing consumer base, Apple appears adamant to push into the region banking on its "quality over quantity" mantra. When visiting in May, Cook said Apple is working to bring its entire product line to Indian customers.
"We are in India for the next thousand years," Cook said at the time. "Our horizon is very long. We are focused on best, not most. So it doesn't bother me that we don't have top market share."
Citing sources familiar with Apple's plans, The Economic Times reports the company is discussing the possibility of manufacturing a quantity of iPhone models at Foxconn's Indian facilities. While an exact timeline for the production shift has yet to be fleshed out, the report estimates the change might come in the next two to three years.
"There's definitely interest," said an unnamed source. "When Tim Cook was here, the government raised the issue of making in India. It is after that that Apple started thinking of doing something in India which is long term."
The report jibes with rumors earlier this year suggesting Foxconn plans to build a plant in India exclusively for Apple products.
Cheaper prices for locals, a faster time to market and another production hub are among the benefits of manufacturing in India. It might also give Apple an in to opening retail stores in the region.
The company has for years sought government approval to operate branded stores in India, but is continually stymied by foreign direct investment trade policies. India trade laws require single-brand stores to source at least 30 percent of goods from domestic suppliers, meaning Apple would have to be granted an exemption -- it was not -- or start producing its products in the region. There have been numerous reports indicating members of the Indian government, including the cabinet of Prime Minister Narendra Modi, are willing to work with Apple on a potential resolution, but an official agreement has yet to be announced.
In August, Commerce and Industry Minister Nirmala Sitharaman led a charge to reevaluate Apple's application for exemption, prompting the finance ministry to reportedly ratify a proposal that would allow single-brand retailers to operate brick-and-mortar stores as long as they are considered a provider of cutting-edge technology.
Perhaps looking to deliver evidence that Apple's presence would add value to the region, CEO Tim Cook visited India with a few key executives in May. The team met with local telecommunications companies to discuss iPhone partnerships, while Cook sat down with Modi to talk retail, manufacturing, encryption and more. The meetings came shortly before Apple announced plans to open a Maps development center in Hyderabad.
India represents a huge opportunity for Apple as iPhone sales plateau. As a premium brand, however, iPhone is slow to catch on in the developing market. Figures released by research firm Strategy Analytics last month show Apple's share of the Indian smartphone market fell 35 percent year-over-year to 2.4 percent during the quarter ending in June. Google's Android, by contrast, owned 97.1 percent of the market.
Despite Android's overwhelming domination of India's existing consumer base, Apple appears adamant to push into the region banking on its "quality over quantity" mantra. When visiting in May, Cook said Apple is working to bring its entire product line to Indian customers.
"We are in India for the next thousand years," Cook said at the time. "Our horizon is very long. We are focused on best, not most. So it doesn't bother me that we don't have top market share."
Comments
You know, the old woo them and dump them routine. Besides it makes no sense. The middle class can't even afford refurbished ones yet.
It's the typical, uninformed, arrogance and ignorance of some anonymous internet bozo who thinks (s)he knows more than the largest market cap company in the world and its CEO does.
On Amazon's Indian site, an iPhone 6S 16Gb is IR42,990. A Samsung J2 16GB is IR7,590. A Panasonic Eluga A2 which is a lot better looking than an 6s and has a whopping 4000 mah battery is still less than a quarter the price of a 6s at IR 8,799 and you don't get the foot wide bezels, either.
You seem to think the only LTE phone people could pick in India is an iPhone.
How stupid is your post?
Did you happen to see how many times the word "Free" was used in that article. this is the problem in India they all expect things for free. You can not even begin to compare India to China. They can only give away stuff for so long before they either go out of business or they have raise prices. However, once people's expectations are that something is free or close very little the ability to raise prices becomes impossible. India's middle class income comes from outside India, they work for companies who primary business is outside India. If the US decides not to outsource services like, IT and recruiting services to India they will be in trouble. India is more dependent on ever other countries economy than their own when the rest of the world starts to suffer India will be in far worse condition.
Lastly, I do not believe India has a skilled work forces like China does, I think Apple/Foxconn will have a very hard time finding 10's of thousand works who have the skills to assemble complex electronics like an iphone.
Are you aware that India has nuclear as well as a space launch capabilities? You seem to be severely underestimating the country.
https://en.wikipedia.org/wiki/Standard_of_living_in_India
And middle class in India is nothing like middle class in the US. The criteria for those 267 M is an income band starting at a US equivalent of $5110. And that criteria isn't people with middle class incomes it's the number of people living in a household with a middle class income. With the average household being 5 people, that middle class income of $5110 isn't going to buy you too many iPhone 6s at $650 a pop.