Trial run of iPhone X manufacturing set to begin in India
India manufacture may soon not be limited to just the low-end of the iPhone line, as Foxconn appears ready to start manufacturing the iPhone X at its Chennai facility.
iPhone XS Max (left) with an iPhone X (right)
According to sources familiar with the matter, and previously rumored, the Chennai Foxconn facility will produce the iPhone X in time for the fall 2019 launch of new flagships. Devices manufactured at the facility will serve not just the Indian market, but be used for export as well.
At present, the facility is not set up for the iPhone, nor has the equipment needed. According to Bloomberg on Tuesday morning, Foxconn will invest around $300 million in the facility to get it ready for the duty, an investment that was previously speculated.
Currently, only lower cost iPhones such as the iPhone SE and iPhone 6S are assembled in India by Foxconn competitor Wistron. A report earlier this year claimed Wistron will update its factory to put out Apple's higher-end handsets, specifically the iPhone X.
It isn't clear, though, if Wistron will get the nod to produce the devices. It seems unlikely that given Apple's small footprint in India, that both manufacturers will be tapped to manufacture higher-end devices in the country.
As of late, there have been a number of hurdles for Apple's expansion plans in India, including a recently decision to allow the country's anti-spam app into the App Store to avoid a ban from the local cellular networks. A top advisor to Prime Minister Narendra Modi also insisted the country should restrict its import of luxury goods like the iPhone and tax them heavily, further hurting Apple's outlook in the country for high-end sales.
iPhone XS Max (left) with an iPhone X (right)
According to sources familiar with the matter, and previously rumored, the Chennai Foxconn facility will produce the iPhone X in time for the fall 2019 launch of new flagships. Devices manufactured at the facility will serve not just the Indian market, but be used for export as well.
At present, the facility is not set up for the iPhone, nor has the equipment needed. According to Bloomberg on Tuesday morning, Foxconn will invest around $300 million in the facility to get it ready for the duty, an investment that was previously speculated.
Currently, only lower cost iPhones such as the iPhone SE and iPhone 6S are assembled in India by Foxconn competitor Wistron. A report earlier this year claimed Wistron will update its factory to put out Apple's higher-end handsets, specifically the iPhone X.
It isn't clear, though, if Wistron will get the nod to produce the devices. It seems unlikely that given Apple's small footprint in India, that both manufacturers will be tapped to manufacture higher-end devices in the country.
As of late, there have been a number of hurdles for Apple's expansion plans in India, including a recently decision to allow the country's anti-spam app into the App Store to avoid a ban from the local cellular networks. A top advisor to Prime Minister Narendra Modi also insisted the country should restrict its import of luxury goods like the iPhone and tax them heavily, further hurting Apple's outlook in the country for high-end sales.
Comments
Apple, as a case in point, has to adapt to the realities that surround it. Forced or not, Apple hit a ceiling and is reacting (albeit slowly). Manufacturing in India is part of that reaction. Others are doing the same. As economies grow and people earn more, there will be less cheap labour to take advantage of but there is no problem there. You simply adapt to the reality.
The more vertically integrated you are the more independent you are. The more distributed your manufacturing options are, the more protected you are from all number of problems (from earthquakes to tariffs). The more units you sell the better the economies of scale you have.
However, limiting yourself to hardware means putting all your eggs in the manufacturing basket. That's why Apple gives so much importance to services and is trying to diversify its revenue streams. When cheap manufacturing options dry up it will be time to focus on the less expensive alternatives.
We can have no qualms about any of this. I'm not going to begrudge anyone wanting to earn more or opting for 'lesser' home grown brands.
If Apple isn't happy with how things are going it has to adapt (react)