MUMBAI: Foxconn Technology, is in talks with the Government of India to facilitate the construction of its first Apple plant in India. The company has initially decided to manufacture ipods, Ipads and iphones both for domestic and as well as the Global markets. The move is said to decrease the cost of Apple products in India.
Foxconn has selected India for its new Apple plant, due to the wage inflation in China, where its majority of the products are manufactured. India is also a closer place to the global markets where Apple wants its presence to be developed.
The Industries Minister of Maharashtra said, ” Foxconn will soon search for a appropriate site in Maharashtra to build an Apple plant. A delegation of Apple’s team would soon visit the state to scout for a location”.
Foxconn has said, that they have a target of developing 10-20 facilities in India by the end of 2020. But the company has denied to provide any details further. The largest electronics manufacturing company cited “commercial sensitivity” as a reason for not letting out any details about its business in India.
The Manufacturing of Apple products in India, will decrease the manufacturing base costs thereafter helping the firm to decrease its products prices. At present Apple iphone 6 with 16 GB sells for an estimated 44,000 rupees ($687.82) in India. On the other hand, its rival Samsung’s Galaxy S6 with 32 GB sells for Rs.40,000 only, the Huffingtonpost reports.
According to Counterpoint research Market monitor, Apple has a market share of ten percent, trailing behind Samsung and other local manufacturers such as Micromax, which dominates the local market in India.