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.

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.

6 Comments

racerhomie3 7 Years · 1264 comments

About 5 years ago

Very exciting times for Apple fans in India. The iPad has already 39% Indian tablet marketshare. Hopefully apple gets 7-10% of the smartphone market within a year or 2.

lkrupp 19 Years · 10521 comments

Well, it appears Apple is shifting at least some of its manufacturing to India even if it’s forced to in order to sell phones there. However, the same thing will happen in India as has happened in China. As the middle class begins to rise so will wages, followed by those same manufacturing plants producing knock-off products labeled as domestic products. Indians will start to buy those products instead because of price and national pride. So the question arises. Where will manufacturing go next? There aren’t any populations and economies like China or India left to exploit. And, by the way, I’m not singling out Apple because ALL manufacturing is following the same path. Meanwhile the middle class is sinking in the U.S. and Europe because of it.

lkrupp said:

Well, it appears Apple is shifting at least some of its manufacturing to India even if it’s forced to in order to sell phones there. However, the same thing will happen in India as has happened in China. As the middle class begins to rise so will wages, followed by those same manufacturing plants producing knock-off products labeled as domestic products. Indians will start to buy those products instead because of price and national pride. So the question arises. Where will manufacturing go next? There aren’t any populations and economies like China or India left to exploit. And, by the way, I’m not singling out Apple because ALL manufacturing is following the same path. Meanwhile the middle class is sinking in the U.S. and Europe because of it.

China also has a lack of creativity culture. Indians have the positive of being in a democracy, rather than 1 party rule. Even if you are right ,it will take 30-40 years for India to reach China’s levels.

mac_128 12 Years · 3452 comments

To be clear, this only means assembled in India, correct? No parts will actually be manufactured in India?

avon b7 20 Years · 8046 comments

lkrupp said:

Well, it appears Apple is shifting at least some of its manufacturing to India even if it’s forced to in order to sell phones there. However, the same thing will happen in India as has happened in China. As the middle class begins to rise so will wages, followed by those same manufacturing plants producing knock-off products labeled as domestic products. Indians will start to buy those products instead because of price and national pride. So the question arises. Where will manufacturing go next? There aren’t any populations and economies like China or India left to exploit. And, by the way, I’m not singling out Apple because ALL manufacturing is following the same path. Meanwhile the middle class is sinking in the U.S. and Europe because of it.

This seems like a 'have your cake and eat it' desire.

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)