William Gallagher
Foxconn has just started local production of the iPhone XR at its plant in India and will later make the iPhone 11 too. The move will keep manufacturing costs down, but Apple reportedly doesn't plan price cuts.
Full-scale manufacturing of Apple's iPhone XR has now started at Foxconn's plant near Chennai, India, following several weeks of trial runs. It also follows months of negotiations over required governmental approvals, with Foxconn initially confirming iPhone production back in April.
At that time, the company would not specify which models of iPhones would be built in India. More recently, there were reports that the iPhone XR and iPhone XS would be produced in time for August shipments. Again, however, sources said that unnamed approvals were pending.
Now ETTelecom is reporting that the production line is operational for the iPhone XR, and that Apple plans to add what the publication refers to as the iPhone 11 series. Whether it will include the iPhone 11 Pro and iPhone 11 Pro Max is implied but not yet known.
The iPhones made in India will not be solely for that market. Reportedly, the plan is to export at least some devices from India to other markets including Europe.
The move to produce iPhones in India is significant because of local taxes, Apple's move to diversify its production away from solely relying on China, and its continuing investment in India.
Apple previously used manufacture Wistron to make iPhone 6s and iPhone SE models in India for the same reason.
Due to India's laws favoring the use of locally-sourced components in devices, Apple stands to save around 20% of the production cost of its iPhone XR by moving manufacturing there.
However, according to ETTelecom, Apple is not planning to cut the purchase price of its iPhones in the region, although the company has reportedly selected a location for its first-ever Apple Store in India.
Amber Neely
Andrew Orr
Christine McKee
AppleInsider Staff
Chip Loder
7 Comments
If those iPhones are immune to import tariffs, their effective price to consumers in India will already be lower. The headline ignores that, making it sound like Apple is ignorantly pricing themselves out of the market.
Yes. Apple has priced themselves out of the market in India. But that’s okay. Apple is not targeting an ave. Indian who makes $2000 a year. They are targeting people in the upper middle class ,who always loved Apple. Apple’s lacking in India is that their world renowned service was not present there. Apple’s store & availability of more cheaper parts will help that drastically. Plus the 20% Apple is saving is going to ads & margins which historically has been lower in India compared to other markets Apple operates in.
This is only partly about India. More to the point, iPhones assembled in India will not be subject to Trump tariffs.