A day after confirming that it has locally started manufacturing iPhone 7 in India, Apple is now reportedly moving toward mass producing the iPhone X and iPhone XS in the country as well. According to a new report, Apple production partner Foxconn is weeks close to trialling production of the newer iPhones.
Foxconn Technology Group which happens to be Apple’s biggest production partner is now reportedly just weeks away from conducting production trials, says a report by Bloomberg. When plans are finalised, iPhone X and iPhone XS will join the ranks of iPhone 6S, iPhone SE and iPhone 7 for being locally manufactured in India.
Foxconn is expected to start the full-scale assembly at its factory located in the outskirts of Chennai and will invest close to $300 million for the initial production line. Producing its smartphones locally would result in avoiding import duties for which Apple pays 20 percent. Apple is also expected to open its own flagship stores across the country as the government is moving toward 30 percent retail sourcing locally.
The latest development also comes as a move by Apple to make the most from the world’s second largest smartphone market. The company only amounts to 1 percent of the total shipments in the country, selling around 1.7 million units in the last year. Local production will not only result in lower costs in manufacturing an iPhone, but this also makes Apple’s iPhones a tad bit cheaper affair than it has been till now.
The move could also help Apple diversify its manufacturing line since the US and China are in the middle of a trade war. Thus, manufacturing iPhones in India would serve as a necessary backup in case things got worse between the US and China.