There are ongoing talks between the government officials in India and Apple’s iPhone about the possibility of Foxconn Technology citing the Apple iPhone manufacturing plant in India. This could imply that the Indian market will be able to purchase iPhones at a lower price. There is also expectation that this will lead to the reduction of iPhone prices in the global market.
Foxconn relocating its Apple iPhone manufacturing plant to India will help it to overcome the increased inflation of wages in China. The increasing wages subsequently leads to an increase in the price for producing the phones. Most of Apple’s iPhones are currently produced in China. Relocation to India will also make the site of production closer to where increasing growth for iPhone sales is being expected by key clients.
Considering the high competition in the smartphone market in the world, lower cost of production will be able to help them keep their customers and also attract new ones. A reduction in the current price of Apple iPhone will make it more competitive in India and other parts of the world, compared to other phones currently in their market.
Tim cook had first visited India in May of 2016 with the aim of expanding the business of Foxconn in India. He was able to meet with Narendra Modi who is the Prime Minister, policymakers and businessmen.
Tim Cook had during this period suggested that based on the roadmap of Apple, the company was not just coming to India to spend a few years, but to spend centuries.
According to Tim Cook, a first step begins a journey. We are not coming here for just one year or some few years. On the contrary, we are coming here for a long period of time, most likely centuries. We are a company with long terms goals. Our major aim is the iPhone, as it is the major part of our company.
A software laboratory had been inaugurated in Bengaluru during his trip. In Hyderabad, an office was also cited, which was to concentrate on developing Indian maps.
In June of 2016, Maharashtra Industries Minister, Subhash Desai, informed pressmen of the intention of Foxconn to send a delegation to India to check for good locations where Apple iPhone manufacturing plant in India could be sited.
The aim was to have centers as well as 10 to 12 facilities in India, even though no official details have been given.