This is part of Apple’s strategy to minimise risks amid the US-China trade war, which could affect its production in China.

Apple wants to make India a key global production hub
Atom Tech Shorts Wednesday, October 16, 2019 - 09:44

Apple Inc is set to make India an important manufacturing hub for its iPhones and its latest models will also be assembled here, reports Economic Times. This is a win-win situation since the government of India has been pushing Apple to start making more of its iPhone models here and not just a few low-end ones. From Apple’s perspective the standoff between the United States and China over trade issues, if not resolved, could cause disruptions in its supply lines. Having an additional facility in India would help the company.

Apple could have made this decision after seeing its locally made iPhone XR notching up good numbers in sales over the past few months. As per this new development, the iPhone 11 series phones launched last month may all be made here. Apple has made exports of its iPhone 6s and iPhone 7 models to Europe from here. Taiwanese Wistron and Chinese Foxconn are the contract manufacturers operating in India, one near Chennai and the other in Bangalore.

Apple had effected some price reductions in the past, which helped it sell more iPhones in India. However, it is learnt that the company won’t cut any prices of its latest phones even if made in India. This is despite the fact that the company ends up saving up to 20% in import duties. Many of Apple’s component suppliers have setup shop here taking care of the company’s requirements locally. These include Flex Ltd, Salcomp Plc, Sunwoda Electronic Co, CCL Design (Suzhou) and Shenzhen Yuto Packaging Technology Co.

Apple is said to have reached a market share of 2% in the Indian market. It had dropped to 1% and below some months earlier. The company’s iPhones are in the higher price bracket. Within the premium phones, Apple definitely gives a good fight to players like Samsung and OnePlus.

Besides the manufacturing activities, Apple plans to open offline retail outlets across the country and have an online presence as well.