Apple still offers last year’s iPhone XR, and now the company is expanding production of the device to India.
According to a recent report, Apple is also planning to start making their new iPhone 11 in India as well. This strategic move will apparently save the company significant manufacturing costs of the handsets. By shifting production to India, Apple aims to reduce its dependency on China, diversify its manufacturing base, and potentially avoid tariffs and trade restrictions.
Production at Foxconn’s Chennai Facility
Apple has now started to make the iPhone XR at Foxconn’s manufacturing facility near Chennai, India. This has been planned for a while, although it has taken months to get the necessary government approval. The Indian government has been keen to attract more manufacturing investments, and Apple’s decision aligns with the “Make in India” initiative, which aims to boost local manufacturing and create jobs.
Foxconn, one of Apple’s primary manufacturing partners, has been instrumental in setting up the production lines for the iPhone XR. The facility in Chennai is equipped with state-of-the-art technology and adheres to Apple’s stringent quality standards. This move not only helps Apple cut costs but also allows the company to cater to the growing Indian market more effectively. India, with its vast population and increasing smartphone penetration, represents a significant opportunity for Apple.
Future Plans for iPhone 11 Production
Apple will next start to produce the iPhone 11 in India. It is not clear as yet whether this will also include the 11 Pro and 11 Pro Max handsets. However, expanding production to include these models would further solidify Apple’s presence in the Indian market and provide more options for consumers. The iPhone 11 series has been well-received globally, and local production could make these devices more affordable for Indian consumers due to reduced import duties and taxes.
In addition to cost savings, local production can help Apple mitigate risks associated with geopolitical tensions and supply chain disruptions. By diversifying its manufacturing locations, Apple can ensure a more resilient supply chain and maintain a steady flow of products to the market.
Moreover, producing iPhones in India could lead to potential benefits for the local economy. It could create thousands of jobs, both directly and indirectly, and contribute to the development of a skilled workforce. The presence of a major player like Apple can also attract other tech companies and suppliers to set up operations in the region, further boosting the local economy.
Apple’s decision to manufacture in India is also a strategic move to capture a larger share of the Indian smartphone market. Despite being one of the largest smartphone markets in the world, Apple’s market share in India has been relatively small compared to competitors like Samsung and Xiaomi. By producing locally, Apple can offer more competitive pricing and appeal to a broader range of consumers.
In conclusion, Apple’s expansion of iPhone XR production to India and the planned production of the iPhone 11 series represent significant steps in the company’s global manufacturing strategy. These moves are expected to bring cost savings, enhance supply chain resilience, and strengthen Apple’s position in the Indian market. As Apple continues to invest in local production, it will be interesting to see how this impacts the company’s growth and market dynamics in the coming years.
Source Apple Insider
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