Corporation Foxconn, a major Assembly partner of Apple in 2019 will transfer production of some models of iPhone in India. Reuters learned from a source familiar with the situation. According to the interlocutor of the edition, initially, the country planned to start the Assembly of the most expensive vehicles belonging to the line X. For this, Foxconn will have to expand its Indian production line, investing in the expansion of more than $ 350 million.
As the main reasons for the transfer of production models in India iPhone Reuters sources call the desire of Apple to strengthen its position in the local smartphone market. Starting Assembly of branded vehicles in the country, the company can reduce logistics costs and reduce their retail price. In addition, India can become one of the few countries where Apple will resume sales of iPhone X, which was discontinued earlier this year.
Sale in India vs. import duties
It is interesting that the trade confrontation between China and the United States, which may cause price increases on the iPhone due to the introduction of import duties does not apply to the transfer of production of any relationship. In any case, interlocutors Reuters familiar with a situation, never mentioned it. In this regard, there is every reason to believe that a possible rise in the cost of the iPhone in the States, Apple care less than sales in the Indian market.
Earlier it was reported that Apple’s Assembly partners are considering the possibility of moving the production of iPhone outside of China in the imposition of import duties. One of the priority countries, where Foxconn and Pegatron would assemble smartphones were Thailand, Malaysia and Vietnam. However, according to rumors, in Cupertino have reacted to this perspective is quite unusual, stressing that will address this issue only if the fee exceeds 25% of the price of the devices.
What do you think, will the build quality of the iPhone, if their production will shift to India?