Apple is finally making its first steps to producing the latest iPhones in India. While the company already makes the iPhone 6s, SE and 7 in the country, the latest one to join the leagues are going to be the iPhone X/XS lineup. According to the latest reports, Foxconn is planning to begin the trial production of the new iPhones in the Chennai facility. The stock will ramp up with leaps and bounds, thereafter.
Apple producing iPhones in India is a piece of good news for local consumers. The most prominent reason behind this would be the cuts in the import duties for Apple products in India. We expect future iPhones to sell at 20% fewer import duties in the country. Even more, the company is closer to opening its own flagship stores across India as the government commands 30% local sourcing for retailers.
Apple is now considering India seriously, being the worlds second largest smartphone market in the world. Bloomberg records only 1% of the iPhone sales in India. Last year, the company sold about 1.7 million iPhones in the country. Whatsmore, the slash in the pricing of Apple iPhones will benefit the company in competing against the Korean giant Samsung, at least.
Expectations are that Foxconn will invest about $300 million for the iPhone production in india. The investment will escalate itself with burgeoning demand in the market. Well, this is the right decision for the company as it is already struggling to make sales in China. Selling flagship iPhones at a cheap price will be the best backup plan from Apple.