Apple starts manufacturing iPhone XR in India

Apple has been
losing its shine in India due to its price point. The company plans to fight this market battle by making India one of its key global production hubs. Apple has started the commercial production of the latest iPhone XR in Chennai.

The Cupertino-based tech firm is known for its innovative smartphone lineup. Apple’s products have the unique brand equity for their quality, design, and innovative software that powers them. India has not been the best market for the iPhone. The company has been taking corrective measures to grow the iPhone sales in the country since then. In the earnings calls its analysts, Apple CEO
Tim Cook had stressed that there are several factors why iPhone is not picking up in India. He had said, “India continues to be a critical market for Apple as premium segment is likely to grow faster than the overall smartphone market.”

Apple has started the commercial production of its newest iPhone XR in Chennai with the help of Foxconn. Apple wants to make India one of the key global production hub for the iPhone. The on-going US-China trade deal and US government’s stand to suspend the proposed tariff escalation on Chinese imports will adversely affect Apple. The tech firm relies on China for assembling most of its products including the iPhone.

The Taiwanese contract manufacturer, Foxconn has invested $1 billion in India. Apple already carries out limited manufacturing of its older iPhone models – iPhone 6s, SE, and assembling of iPhone 7 in India. Apple is working with Wistron for assembling of its older iPhone models in the Bengaluru plant.

The iPhone-maker’s decision to start manufacturing to iPhone XR indicates its strong plans for India. The company has planned to invest $140 million to setup the first online retail platform and three company owned stores in major cities. The local manufacturing will help Apple save 20% in import duty.