Apple may soon begin to create high-end flagship iPhones such as iPhone XS, XS Max, and XR in India. This is because the Cupertino-based tech giants are looking at ways to reduce their dependence on China for the creation of new iPhones. Apple supplier Foxconn is reportedly interested in coming to India to plan for the process of transferring its manufacturing base from China to India. According to a report by The Wall Street Journal, Foxconn’s senior executives are planning to arrive in India next month for advance talks and discussions.
The WSJ report claims that possibly senior executives, including President Teri Go, are planning to come to India next month after the Lunar New Year to discuss the plans. However, Foxconn and Apple India both refused to comment on the new development.
In India, low-end Apple iPhone 6S and iPhone SE are already being assembled by Vistron in India. However, high-end iPhones will be made by Foxconn instead of Wistron, both Reuters and WSJ have confirmed in related reports.
According to Reuters, Manufacturing will be at Foxconn plant in Sriperumbudur city of Tamil Nadu. Tamil Nadu Industries Minister M. C. Sampath told Reuters that Foxconn, who already makes a phone call for Xiaomi Corp, will invest $ 25 billion ($ 356 million) to expand the plant. He said that investors can create 25,000 jobs.
In another recent development, the government is already looking at specific policy incentives to attract Apple with other manufacturers to create and export India. Apple is already negotiating with the Ministry of Commerce and Revenue Department to take some sops for its component makers. The company is demanding a commitment for tax breaks for five years under merchandise exports from India’s scheme (MEIS), besides income tax benefits for the proportion of export made. Officials of the two ministries have sought input from the Ministry of Electronics and IT for the proposed policy turn, the person told the ET.