/Report: Following Apple’s strong request, Foxconn is investing 1 billion in India

Report: Following Apple’s strong request, Foxconn is investing 1 billion in India

Apple has some ambitious plans in India, as the company has already confirmed that they will launch the first Apple Store there by 2021. And now Foxconn is investing 1 billion in its India facility, where the Taiwanese factory has already assembled several iPhone models.

According to a Reuters report, Apple is slowly moving its production line from China to other countries, and as part of plans to increase production in India, Apple has asked Foxconn to expand its facilities in Sripurbudur, where the two companies are already submitting iPhone XR.

The expansion plan is expected to be completed in three years and will allow other models of the iPhone to be made in India. Sources told Reuters that the investments would add more than 6,000 jobs to the Sriperumbudur facility.

Although India is the second largest smartphone market in the world, Apple accounted for only 1% of sales there. The country has high import tariffs, which makes Apple’s product prices much higher than the competition. Building products locally can help Apple cut some costs, which can lead to more attractive prices for consumers.

If the plans are successful, Apple could use the Foxconn facility in India to export iPhone models to other countries.

Neil Shah of Counterpoint, a Hong Kong-based technology researcher, said, “India’s labor is cheaper than China’s and the gradual expansion of its supplier base here will enable Apple to use the country as an export hub.”

Apple is rumored to be launching an official online store in India later this year.

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