We’ve written a dozen posts on how Apple wants to start manufacturing iPhone (and possibly other Apple devices) in India. Over the past year, there have been so many twists and turns in this tale that Abbas-Mastan would be proud of it! And now, we have a new chapter in that saga.
And now, a new chapter has been added to that saga.
Apple has restarted talks with the Indian government about their prospects for local manufacturing.
Under the umbrella of Prime Minister Modi’s “Make in India” campaign, Tim Cook is hoping to make inroads into India’s robust economy. Given the mammoth price war being waged in India right now, Apple has no option but to fight the market with lower profit margins. And that means manufacturing locally.
But then, establishing a manufacturing plant is no mean task. It takes a lot of capital to raise a plant and these funds could be used elsewhere to turn up profits. So Tim Cook wants to be absolutely sure that if Apple sets up a plant, it will be “worthwhile.”
In terms of users (smartphone/feature phone), India is the second largest market in the world. It’s expected to overtake China and become number one soon. So it’s either now or never for Apple, and the company wants to go all out. However, that doesn’t mean they will go blind into the battlefield. Gadgets360 reports —
“Apple, in a letter to the federal government in November, outlined manufacturing plans and asked for financial incentives.”
The report goes on to point that the transition into manufacturing for Apple in India can be easier than anticipated because some of its big contractors are already big players in India. “Taiwan’s Hon Hai Precision Industry Co Ltd (Foxconn), which makes Apple devices such as iPhones and iPads, has a manufacturing facility in southern India.”
Apple manufacturing their own phones in India could signal the start of a price war of its own, much like the data price war being waged right now. So can Apple be the Jio of smartphones? Or will it refuse to reduce the prices too drastically, fearing a loss of its “premium” tag?
I, for one, wouldn’t mind a cheaper iPhone. Not so sure about a majority of iPhone owners, though, who use an iPhone as a status symbol more than a communication device.
