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Foxconn Reportedly Preparing to start Production Trials of iPhone X Models in India later this Quarter

1 X Foxconn report cover

 

Patently Apple posted a report in late December 2018 titled "Foxconn will Reportedly Expand its Current Plant in India to Manufacture Higher-End iPhones as early as 2019." The report noted that Foxconn would be assembling the most expensive models, such as devices in the flagship iPhone X family. The Indian Government told Reuters that Foxconn would be investing 25 billion Indian rupees ($US356 million) to expand the plant, including investment in iPhone production.

 

Last month we also learned that Wistron was technically waiting for India's 'Cabinet" to finalize their application for a larger iPhone plant. Looking forward, things are looking a little brighter for Apple in India. The Foxconn and Wistron plants could help Apple gain approval for major flagship Apple Stores which is really needed to get Apple out of their current funk in India.

 

Today Bloomberg is reporting that Foxconn may only be weeks away from starting trial runs of making iPhone X family models.  

 

Bloomberg quoted Neil Shah, research director at Counterpoint Research ignorantly stating that "Seen from Cupertino the India market looks minuscule so Apple’s strategy has been myopic."

 

I rather doubt that Apple has been myopic about India. Apple has been battling it out behind the scenes in negotiations with the Indian Government which has been relatively negative for years.

 

Now that iPhone plants are gearing up for production in India it will mean plans for flagship stores will accellerate and Apple will finally get the chance to put some muscle into India.

 

That doesn't mean that they'll be dominating India's smartphone market anytime soon, if ever, as Xiaomi, OnePlus, Samsung and others are deeply entrenched in that market and happy selling into the $200-$300 smartphone segment.

 

It will however allow Apple to build a solid base like they have in China and likely grab 8-12% of the market over the next few years. That would be far from their current 1% market share that they've been stuck in for years.  

 

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