Apple is reportedly spending $1 billion on growing its production capacity in India. This is part of an ongoing move away from the tariffs that will soon be levied on iPhones assembled in China.
It might also help increase Apple’s sales in India.
Spend money to make money
An unnamed source told The Times of India that “Apple will be investing $1 billion in India through its partners. They have said the production will be used for meeting the demand for its products across global markets.”
Apple’s long-time partner Foxconn is supposedly the main beneficiary. This Taiwanese company does iPhone assembly in China and is apparently taking that expertise to India.
This will bring additional benefits, as phone component makers are also planning to move business to India to supply Foxconn.
Making India a global iPhone hub
Entry-level iOS devices have been made by Wistron in India for years, but July brought word that Foxconn has begun producing Apple’s top-tier models in this country.
Handsets made in India evade the tariffs imposed on imported ones by the India government. This would allow Apple to sell these devices at lower prices, potentially increasing sales.
But these aren’t just for local sale. As the ToI report indicates, iPhones made in India will be shipped around the world.
A shift in focus to India makes sense as the US/Chinese trade war goes on. President Trump will place hefty tarrifs on Apple phones, tablets and laptops assembled in China beginning December 15. There are already import taxes on Apple products made in that country, including iMacs, AirPods and Apple Watch. Moving production for all these products to India would evade these taxes, naturally.