Apple supplier Foxconn has come under fire over the last few years for its factories’ working conditions in China, but the company is now making plans to open up a new Apple plant in one of the world’s other booming nations: India.
Foxconn is in talks to manufacture the iPhone in India, reports Reuters. The move could help lower prices of Apple devices in India where Apple has fallen behind Samsung and other local players in marketshare.
“Foxconn is sending a delegation of their officers to scout for locations in a month’s time,” Subhash Desai, Industries Minister of India’s western state Maharashtra, told Reuters. The Apple supplier hasn’t confirmed any commitments yet, but is supposedly looking to manufacture iPhones, iPads, and iPods for both domestic and global sales.
By moving some operations to India, Foxconn could mitigate the accelerating wage inflation in China where the majority of iPhones are made. Apple has struggled to grow in India as rapidly as it has in China, but with a base production site in the country, it could help Apple win over more customers with cheaper iPhones.
Between 10-12 Foxconn facilities are planned for development in India by 2020, including data centers and factories. Foxconn had a plant in India that was closed last year after Nokia left the country.
Source: Reuters
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
2 responses to “Foxconn plans to build first Apple plant in India”
It makes sense for Apple & Foxconn to expand into India, since it is the 2nd largest market in the world now (after China). Wage prices are getting expensive in parts of the Far East, but more than that, India today has a strong IT sector and a good portion speak English as a second native language. They also respect international IPs, which is probably why they are being looked at as a potential location…
Good for them, and good for India. Labor costs for manufacturing jobs will be competitive. India can do with a shot in the arm for electronics manufacturing for which there’s vast potential in the country.