A good news for Indian Market, according to Govt. officials the manufacturer of Apple’s iPhone Foxconn is planning for building a first Apple plant in India. India is a largest consumer of cell phone in the world market. Apple, Samsung, Micromax, Gionee, Lava are the main supplier of cell phone in India.
The Taiwan-based tech giant, the world’s largest contract maker of electronic products, is upset due to large increase of wage rate in China.
The main moto of the company is to lower the cost of production of the product and keep hold of Apple orders amid intensifying competition with nimble manufacturing rivals such as Quanta Computer.
Foxconn has said it is aiming to develop 10-12 types of centers in India, including factories and data centers, by 2020, but declined to comment on detailed plans on Thursday, citing commercial sensitivity.
“Foxconn is sending a delegation of their officers to search for locations and other important requirements for their establishment in a month’s time,” Subhash Desai, Industries Minister of Maharashtra, told Reuters.
Desai said Foxconn had yet to make any firm commitment, but he said the group was looking to manufacture iPhones, iPads and iPods, both for domestic as well as global sales.
According to latest data available Apple’s iPhone 6 with 16GB sells for around Rs. 44,000 in India, versus Samsung’s Galaxy S6 with 32GB which sells for around Rs. 40,000 ($625.29). Apple holding only 10% market share in India and on the other hand Samsung and local manufacturer Micromax almost having nearly 60% of the market share. As we discuss earlier, India is biggest market of cell phone and yet the finest manufacturer of cell phone only having 10% market share not acceptable at all by the company.
Make in India
A return of Foxconn – which was forced to shut up shop in India last year after client Nokia closed – would be a major victory for India, which badly needs to turn its tech boom into a manufacturing and employment boost.
India, under Prime Minister Narendra Modi, has sought to reboot manufacturing, but the country is yet to rival China, particularly in technology where most factories will likely be assembly units to begin with. But local businessmen are betting that as global companies invest in the country, suppliers will follow.
A lack of good infrastructure and suppliers are the biggest hurdles to making technology products in the country, forcing most of India’s more than 100 different phone companies to get their products from the mature markets of China and Taiwan.
Apple is among the biggest clients for Foxconn – the trade name for Hon Hai Precision Industry Co Ltd – which also makes components for companies such as Xiaomi, Acer and Sony.
“The smartphone boom in India indicates the time is just right to focus on expansion plans and increasing volume in India to a comparable level with the China market in the next five years,” said Sky Li, vice president of phone manufacturer Oppo.
India has the second-highest number of mobile phone accounts behind China. According to networking solutions company Cisco Systems , there will be 650 millionsmartphones in the country by 2019. The number of tablets will rise 9 percent to 18.7 million by then.