Why your next iPhone may be made in India

A delegation of Foxconn (Hon Hai Precision Industry) officials will visit India next month to scout for locations to build manufacturing facilities and data centres Subhash Desai, Industries Minister for Maharashtra confirmed to Reuters. Foxconn have reportedly said they are planing to build 10-12 sites in India by 2020 and have already met with reps in several Indian states.

Rising labour costs in China and large tax bills are factors making Smartphone manufacturers look at other locations for production and as India is the world’s fastest growing Smartphone market it makes sense to produce devices there. 111 million smartphones are expected be sold in India this year and 149 million in 2016 By 2019 there are predicted to be 650 million smartphones in use in India, Apple currently have 10% of market share in India.

Foxconn manufactured Nokia smartphones in India until last year and their return to India will be welcomed as part of Prime Minister Narendra Modi's drive to get products ‘made in India’. Indian consumers would also benefit from lower priced iPhones if they were manufactured in India. Foxconn of course want to keep Apple, one of their biggest customers and by moving production to India and lowering costs it could help them make sure that Apple stay loyal.

If and when Foxconn  start making iPhones in India they will probably be produced for both the domestic market and global markets so there is a fair chance your next iPhone could be made in India .Earlier this month China’s Phicomm announced plans to invest $100 million setting up Smartphone manufacturing plants in India following on the heels of rival Xiaomi who had already announced plans to 'make in India'.                                     

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