Bengaluru: Foxconn Technology Group is within weeks of starting trial production of the latest iPhones in India as Apple Inc. seeks to revive its fortunes in the country, people familiar with the matter said.
The trial run of the iPhone X range of devices would come before Foxconn starts full-scale assembly at its factory outside Chennai, the people said, asking not to be identified as the plans are private. Wistron Corp. already produces older models, such as the iPhone 6s, iPhone SE and iPhone 7, at a plant in Bengaluru.
Apple has become a minor player in India with about 1 per cent of the country’s shipments, as its higher prices deter customers in the world’s fastest growing major market. Production in India would help the Cupertino, California-based company avoid import duties of 20 per cent and also meet the 30 per cent local sourcing rule that would allow it to open its own stores in the country.
“Seen from Cupertino the India market looks minuscule so Apple’s strategy has been myopic,” said Neil Shah, Research Director at Counterpoint Research. “They haven’t capitalised on the ground potential--India will cross half-billion smartphone users this year.”
As Apple’s market share declines in China and the US-China trade war heats up, the US company needs to diversify into India. “Apple no longer wants to keep all its eggs in one basket,” said Shah.
