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Apple Testing New Shipment Business Model in China

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It's being reported today that Apple and Foxconn (Hon Hai Precision Industry) are testing a new service to help sell products in China by directly shipping them from plants in Zhengzhou China to the domestic market. Apple has been aggressively trying to expand its presence in China but needs logistical support to accomplish this goal. Foxconn will be able to assist Apple on this front while providing them with needed after-sale maintenance services in China.

Foxconn and Apple have tentatively reached an agreement with China's customs authorities and already started directly shipping a small amount of products to the China market in September, the sources claimed.


In the past, Apple's products had to be first shipped to Hong Kong or Shenzhen, China to complete the export procedures and then imported back before they could hit the store shelves in China. The direct shipments will reduce import taxes, and may reduce the prices for Apple products in China.


Foxconn is reportedly attempting to copy such a direct shipment business model to other countries such as Indonesia and Brazil.


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