Apple iPhone fans in India will soon witness a possible price drop, courtesy Faxconn's plans to make the device in India.
The largest manufacturer of electronics is apparently interested in India and is in preliminary talks to shift some of its iPhone production from mainland China to new units it plans to open in India.
The reason behind this change is said to be the rising labour costs in China. The in-house production will also help Apple competitively price its products to take on Samsung and Xiaomi.
Foxconn is the largest manufacturer of Apple products, which includes iPhones, iPads and iPod devices. The China-based manufacturer said it plans to open 10 to 12 factories and data centers in India by 2020, but failed to give out any specifics.
"Foxconn is sending a delegation of their officers to scout for locations in a month's time," Subhash Desai, Industries Minister of India's western state Maharashtra, told Reuters.
This isn't the first time we are hearing about Foxconn's plans to set up manufacturing units in India. In April, sources revealed that two factories, one in Gujarat and another in Noida, will be set up alongside a small trial production unit in Sri City, Andhra Pradesh, ET reported.
Foxconn's smartphone manufacturing units in India were shut down in 2014. The facilities built Nokia phones but closure of Nokia plant resulted in Foxconn's exit.
India has grown to be a crucial market for smartphone manufacturers. According to Cisco Systems, the number of smartphones in the country is expected to reach 650 million by 2019 and tablets will rise to 18.7 million. Apple, which is an important client for Foxconn, holds 10 percent of the smartphone market share in India and will benefit from the new manufacturing units within the country.
Reducing the cost of its iPhones and iPads will enable Apple to sell more of its devices in India. The company's current flagship iPhone 6 16GB variant sells for around ₹44,000, while rival Samsung offers Galaxy S6 32GB for ₹40,000.