The Next iPhone Might Come From India, Not China
David Curry | | Apr 14, 2015 05:49 AM EDT |
(Photo : Reuters) Apple's lead manufacturer Foxconn is planning a move to India.
It might not matter where your iPhone comes from, but given Foxconn's past when it comes to manufacturing and staff treatment, it might be interesting to know the primary manufacturer for the iPhone and iPad is planning a move to India.
It could be Foxconn's fallen for the 'Make in India' initiative billed by the Indian government to get companies to manufacture goods in the country. The government claims it has an active workforce capable of providing solid performance, alongside excellent business laws and taxes.
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Seeing its neighbor hog the limelight when it comes to manufacturing for the past three decades, India is looking to surge past China and take the number one spot. As the two countries come close to similar population standpoints, it seems clear India is looking to become the next China for business.
Foxconn is launching three factories in the country in Gujarat, Uttar Pradesh, and Andhra Pradesh provinces. Two will be full factory floors for building devices, while the third will be focused on R&D and headed by some of Foxconn's executive employees.
That does mean most of the iPhone and iPad production will remain in China, where Foxconn has a workforce of over two million. The goal of the Indian plant is to have a larger workforce and a diverse portfolio for potential clients that may not want to work inside China.
Apple already works with several operators in Taiwan and South Korea for its chipset, display and battery. It's not focused on having all of its manufacturing in China but recently moved some of the iPhone responsibilities to Pegatron, showing how dominant China is when it comes to manufacturing most of the device.
Assembling will remain in California, allowing Apple to sign the product with the 'Assembled in California' stamp. Apple tried to open up manufacturing in the U.S. for sapphire crystal glass factories but the provider failed to deliver and went bankrupt last year.
India is already one of the largest importers of smartphones and has a huge user-base nearing the levels of China. The difference is India's customer base wants cheap Android devices not phones from Apple or Xiaomi in China.
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