Apple is resting on the Indian plant of Foxconn, its partner and long-time supplier, to produce its affordable iPhone.
Apple has had a long-standing business relationship with Foxconn. Originally from Taiwan, this company specializes in the manufacture of electronic products is now mainly established in China, but it also has factories in other Asian countries, including India. A boon for Apple who has been trying for some time to distance himself from China.
Long dependent on China, Apple now wants to multiply its suppliers to avoid surprises if one of them goes bankrupt or tries to put pressure on prices.
Trade tensions between China and the United States also prompted the California firm to look for suppliers outside of China with an affordable workforce.
That’s why Apple had turned to its partner Foxconn and its factory based in India to assemble its new iPhone. At first, the factory dealt only with high-end models of Apple; iPhone X, iPhone Xs and Xs Max. From now on, affordable models will also be assembled, including the Xr and 11 models.
The high-end models 2019 could also be produced later in this plant.
For this, the Taiwanese company has invested a lot of money to develop its production chain. For its part, the Apple also had to negotiate a lot with the local government with which the firm had already encountered problems.
This major relocation of the iPhone production line should allow a reduction in manufacturing costs, about 20%. Unfortunately for consumers, this economy should not be impacted on the price of the iPhone.
Destined for world markets – including Europe – iPhone made in India will be sold at the same price as smartphones produced elsewhere.