Apple currently occupied only 1 per cent market share in India
As per the latest reports, Apple Inc’s top-end iPhones, which are assembled in India by Foxconn’s local unit, will likely hit Indian stores next month. It is likely to lead to a price reduction in the world’s second-biggest smartphone market.
As of now, there are few approvals pending, however, the India-made iPhone XR and XS devices are expected to hit the market by August, as per the sources. The company has not responded to the comment and Foxconn has maintained that it does not comment on customers or their products.
Apple, in its bid to expand, is trying to save on high taxes which are levied on the import of fully-built devices as well as meeting the local norms, in order to open and start exclusive retail stores in India.
Although Apple’s devices are sought-after by millions of people in India, the high-bracket pricing has forced its market share to shrink to a meagre 1 per cent which has ceded the space to China’s OnePlus.
As per a report by Reuters, the local unit of Hon Hai Precision Industry Co, widely known as Foxconn, would kick start assembling iPhone X family devices in Tamil Nadu late this year. Cupertino, California-headquartered Apple manufacturing partner assembles the lower-cost SE, 6S and 7 models in India through Wistron Corp’s local in Bengaluru.
“Local production will give Apple the leeway to play with the margins of their distributors and indirectly price their phones lower,” said RushabhDoshi, a research director at tech consultancy Canalys.
The Indian government has tried to position South Asia’s third-biggest economy as a big beehive and a hub for smartphone manufacturers. It has tried to attract global players to invest in the market with over a billion wireless connections and cheap labour.
This push has seen success in the recent past as giants in the field, including Samsung and China’s Oppo, have rapidly spread their wings in the country. Also, contract manufacturers like Foxconn have also seen a spurt as far as domestic operations are concerned.