India is the second-largest smartphone manufacturing hub in the world. Due to the Make in India initiative by our government, all major smartphone makers are assembling their devices locally. India is a highly price-sensitive market, and the government's Make in India initiative had helped smartphone makers cut costs incurred on import duties, which in turn, helped the smartphone brands to price its products pretty aggressively in India.
Apple is one of the premium smartphone makers in the world, but Apple manufactures most of its smartphones in Foxconn's China facility. Apple also partnered with Foxconn to assemble its iPhones in India at Foxconn's Sriperumbudur, Tamil Nadu facility. But, Apple assembles just a mere percentage of its total iPhones in Foxconn's India facilities, that too only older iPhone models are assembled in India. Foxconn also has a production facility in Andhra Pradesh, where it assembles most of the Xiaomi devices. Due to the COVID pandemic, Apple is planning to be less dependant on China and to move a part of its smartphone production out of China.
India is a potential market for Apple to manufacture its iPhones outside China, and now Foxconn plans to invest up to $1 Billion within the next three years to ramp up its existing Sriperumbudur production facility. As a part of this process, Foxconn is also expecting to create at least 6000 new employment opportunities in India.
Apple is planning to open its first Apple Store in India in 2021, and the local production of iPhones can help the brand to have a strong foothold in the Indian subcontinent. Moreover, local production can help the brand to save 20% paid as import duty. If everything aligns as intended, we can expect Apple to assemble its flagship iPhones in India in the future and who knows Apple can even pass the tax benefits to the consumers.