Matrix Posted July 13, 2019 Share Posted July 13, 2019 In brief: Apple has begun exporting India-made, lower-end iPhones to European countries from one of its three contractors in the country, in a move that is likely to benefit both the local economy and the company’s bottom line. Higher-end iPhones are pending approval but are expected to hit the local market as early as next month. Apple has already started shipping the lower end but still perfectly usable iPhone 6S and iPhone 7 to some European countries, in a move that is part of the “Make in India” initiative. Neil Shah of Counterpoint research told India Times the exports are being made in quantities of under 100,000 units a month, which is to be expected as there is lower demand for the older models. Still, these account for 80% of Wistron’s production capacity, who’s been assembling the two models for a year now. With the trade war between China and the U.S., it’s no secret that the Cupertino giant has been looking to offload some of its iPhone manufacturing to countries such as India. The company has been said to move up to a third of its production capacity to Wistron, Pegatron, and Foxconn - the latter of which confirmed the development with an investment of $356 million. Apple is also seeking approvals to start shipping the higher-end India-made iPhone XR and XS as early as the beginning of August, representing a new milestone in its efforts to lower the cost of its flagships for local distributors, as well as open its own stores in the country. Still, about 70-80% of the 250,000 monthly devices produced by Foxconn in India are expected to be exported. To put things in perspective, the move is very beneficial for Apple, who has had trouble selling its iPhones in China where local brands such as Xiaomi, Huawei and Oppo have managed to cut into iPhone sales. The manufacturing costs are said to be three times lower than in China, meaning the company could use India as more than an export hub and sell its flagships locally, where imports are subject to high taxes that make them notoriously more expensive than everywhere else. VIEW: Original Article. Link to comment Share on other sites More sharing options...
dMog Posted July 13, 2019 Share Posted July 13, 2019 well now, ain't that loud shout of a message to China Link to comment Share on other sites More sharing options...
xkryptonx Posted July 13, 2019 Share Posted July 13, 2019 Quote @dMog said.. well now, ain't that loud shout of a message to China Shouldn't be a concern to the government of China as long a android phones are dominating the world markets. Link to comment Share on other sites More sharing options...
lolsee2 Posted July 14, 2019 Share Posted July 14, 2019 These leaves Apple with little profits, and the cheaper iPhone XR, assuming you mean only for India, will then be resold to other region due to price differentiation. If the termination cost is higher than just keeping the production of certain products, Apple would only make a financially more sensible choice to keep producing those phones. Just like stopping production of a refinery costs a huge amount, shutting a production line could cost Apple a huge amount as well. Link to comment Share on other sites More sharing options...
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