Another iPhone manufacturer plans to open factories in India

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India iPhone sales
Designed in California, built in India?
Photo: Ste Smith/Cult of Mac

Just like its iPhone-building rival Foxconn, Apple manufacturer Pegatron is reportedly planning to build factories in India, taking advantage of the cheap labor opportunities in the country compared to China.

Will tomorrow’s iPhones be “designed in California, built in India?” Signs are increasingly pointing to yes.

Pegatron Technology CEO Jason Cheng made the announcement during an investors conference yesterday, in which he admitted that 2016 is likely to be a tough year for his company. Pegatron’s performance in the first half of 2016 is expected to be similar to that of its first six months in 2014, although he expects the second-half performance to pick up steam.

Last year, it was reported that Foxconn was in talks to build iPhones for Apple in India — with between 10-12 Foxconn facilities planned for development in India by 2020.

Pegatron hasn’t announced any figures of its own, but as Chinese wages continue to rise it makes sense that manufacturers will gradually move more and more of their work overseas.

Interestingly, Apple’s suppliers aren’t the only companies wanting to come to India. Apple has also announced plans to spend $25 million on a new office complex this year in Hyderabad.

With Apple finally surpassing the $1 billion sales mark in India last year, and with a growing number of iPhone customers in the country, building iPhones there may turn out to be a shrewd move for all kinds of reasons.