The top end iPhones of Apple, which have been assembled locally in India – the second largest smartphone market of the world, by the Indian unit of Foxconn, is slated to hit the Indian market next month, according to multiple reports in India.
According to analysts and experts, this local assembling would help Apple to avoid the transportation costs and import duties in India and thereby reducing the end price of the products in a market that is the fastest growing for smartphones in the world and in which Apple has a very miniscule market share.
According to local media reports quoting sources with knowledge of the matter, even though Apple still has to get approval for some issues, it is being widely anticipated that the made in India iPhone XR and XS devices would be available for sale in the Indian market by August this year.
There were no comments on the news available from Apple. On the other hand, Foxconn refused to comment on customers or their products.
The import taxes in India that is levied on import of fully-built iPhones is quite high and the assembly of the devices would allow Apple to bypass them. It would also allow the company to meet the local sourcing norms that are necessary for the company to open up its own flagship stores in India – a market that can be a good for Apple given the global slump in demand for its iPhones – including in China – its largest overseas market outside of the United States.
According to experts, the iPhones and other devices of Apple are desired by Indian consumers but they are most often dissuaded by the premium pricing. This has prevented Apple from gaining a foot toe hold in the Indian market and currently it has a market share of just 1 per cent and hopes that this new move could allow the United States tech giant to acquire some market share from rivals such as China’s OnePlus, Oppo and Vivo.
There have been previous reports that assembling iPhone X family devices in India’s southern Tamil Nadu state would be started this year by the local Indian unit of Hon Hai Precision Industry Co, which is better known as Foxconn.
The lower-cost SE, 6S and 7 models of iPhones of the Cupertino, California-headquartered Apple are also assembles in the tech hub of Bengaluru, India, by Wistron Corp’s local unit.,
“Local production will give Apple the leeway to play with the margins of their distributors and indirectly price their phones lower,” said Rushabh Doshi, a research director at tech consultancy Canalys.
The Indian government has been trying to position India as a hub for manufacturing of smartphones and using access to the billion plus market and cheap but skilled workmen as an incentive for global players.
This strategy has met with success with rapid expansion strategy in India has been adopted by global smartphone giants including Samsung and China’s Oppo while domestic operations have been ramped up by contract manufacturers like Foxconn.
(Source:www.economictimes.com)
According to analysts and experts, this local assembling would help Apple to avoid the transportation costs and import duties in India and thereby reducing the end price of the products in a market that is the fastest growing for smartphones in the world and in which Apple has a very miniscule market share.
According to local media reports quoting sources with knowledge of the matter, even though Apple still has to get approval for some issues, it is being widely anticipated that the made in India iPhone XR and XS devices would be available for sale in the Indian market by August this year.
There were no comments on the news available from Apple. On the other hand, Foxconn refused to comment on customers or their products.
The import taxes in India that is levied on import of fully-built iPhones is quite high and the assembly of the devices would allow Apple to bypass them. It would also allow the company to meet the local sourcing norms that are necessary for the company to open up its own flagship stores in India – a market that can be a good for Apple given the global slump in demand for its iPhones – including in China – its largest overseas market outside of the United States.
According to experts, the iPhones and other devices of Apple are desired by Indian consumers but they are most often dissuaded by the premium pricing. This has prevented Apple from gaining a foot toe hold in the Indian market and currently it has a market share of just 1 per cent and hopes that this new move could allow the United States tech giant to acquire some market share from rivals such as China’s OnePlus, Oppo and Vivo.
There have been previous reports that assembling iPhone X family devices in India’s southern Tamil Nadu state would be started this year by the local Indian unit of Hon Hai Precision Industry Co, which is better known as Foxconn.
The lower-cost SE, 6S and 7 models of iPhones of the Cupertino, California-headquartered Apple are also assembles in the tech hub of Bengaluru, India, by Wistron Corp’s local unit.,
“Local production will give Apple the leeway to play with the margins of their distributors and indirectly price their phones lower,” said Rushabh Doshi, a research director at tech consultancy Canalys.
The Indian government has been trying to position India as a hub for manufacturing of smartphones and using access to the billion plus market and cheap but skilled workmen as an incentive for global players.
This strategy has met with success with rapid expansion strategy in India has been adopted by global smartphone giants including Samsung and China’s Oppo while domestic operations have been ramped up by contract manufacturers like Foxconn.
(Source:www.economictimes.com)
