A year after shutting down its shop in India, Foxconn's lofty aspirations seem to have found wings as the manufacturer of Apple’s iPhones has plans to open nearly 10-12 facilities here.
Surging manufacturing cost in Chinese markets is cited as reason to shift its camps to India, where Foxconn is likely to set up factories and data center by 2020.
According to a brief statement to Reuters, Subhash Desai, Industries Minister of Maharashtra, “Foxconn is sending a delegation of their officers to scout for locations in a month's time.”
For Apple, India could be a huge market where, the iPhone faces tough competition from Samsung and other players in terms of price. Notably, Apple’s iPhone 6 with 16GB comes at around Rs.44,000/- ($687.82) in India as against Samsung's Galaxy S6 with 32GB at a price of Rs40,000 ($625.29).
According to Counterpoint Research Market Monitor, Apple has to compete with rivals like Samsung and Micromax as iPhone only enjoys 10% market share in India.
Responding to a query from media, Desai said Foxconn didn’t make any firm commitment but said the company is planning to manufacture iPhone, iPad and iPod for Indian and global markets.
It is noteworthy that under the new political leadership of prime minister Narendra Modi, India is set to expedite her manufacturing growth; however, neighbouring country like China pauses a tough challenge as the latter boasts nearly unbeatable technological prowess and excellent assembly line production.
However, industry insiders also look at the other side of India’s growth story. Experts believe that India need to come of age in terms of healthy infrastructure and suppliers, which are the biggest stumbling blocks to manufacture technology products. As a result, over 100 phone companies were forced to get their products manufacture from companies in China and Taiwan.