Foxconn may soon build its first Apple plant in India. The iPhone builder is currently in talks about the possibility of cutting costs by moving production over to India. The company’s production factories are currently in China, but it has concerns about the major wage inflation affecting the local economy.
Foxconn also wants to be closer to the key market it aims to expand in. The tech manufacturer hopes to build 10 to 12 plants in the next five years. There are no details regarding the plans just yet.
Foxconn considers move
Industries Minister of India’s Western State Maharashtra Subhash Desai said Foxconn is sending out people to look at locations.
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This would be a big move for Foxconn, which was forced to shut down in 2014 after Nokia’s closure. India also needs to boost its economy with more manufacturing jobs. Narendra Modi (India’s Prime Minister) has been searching for new ways to bring back manufacturing to the country, but so far it has yet to rival China. The primary reason India lacks tech factories is because the country has no solid infrastructure or suppliers. As a result, India’s phone market has to get its goods from China and Taiwan.
Foxconn remains one of the top manufacturers
Foxconn is one of the leading manufacturers behind popular brands Apple, Sony, Xiaomi and Acer. Phone manufacturer OPPO’s vice president Sky Li added:
“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.”
Apple aims to boost its presence in India with multiple strategies. One of those strategies was to come up with payment plans to help lower the cost of iPhones. Apple recognizes that the Indian market presents new challenges other markets don’t have, and it takes the initiative to meet market needs.