It was reported last week that Apple had reportedly started the production of the iPhone XR in its Foxconn manufacturing plant in Chennai.
The iPhone XR boxes with an “Assembled in India” tag were seen in some of the country’s retail stores. The images of shipping boxes (by Twitter user @newley) confirmed that the device being made in India is out for sale across the country.
Apple happens to assemble most of its iPhone in China. Lately, due to tainted trade relations between US and China, Apple has decided to gradually shift its manufacturing units to other countries. This will include assembly of the latest flagship iPhones in sync with worldwide release schedules and help as a de-risking strategy.
The phones are being assembled at the Chennai factory of Foxconn, the Taiwanese contract manufacturer. The local manufacturing will also help Apple avoid high levies on the import of full-built devices. The iPhone maker will also be able to meet local sourcing norms, helping it open own retail stores in the country.
Apple began local assembly of iPhone starting with iPhone SE last year. The company expanded to start assembly of iPhone 6S and iPhone 7 in collaboration with Wistron. Now, it has expanded to start assembly of high end models as well.
The iPhone maker has not commented on the local assembly of iPhone XR in India just yet. However, the company is now reportedly making iPhone X and iPhone XR locally in the country. It is expected to expand local manufacturing to include iPhone 11 series as well.
With the iPhone XR being locally made in the country, Apple will now save roughly 20 per cent of import duty it previously had to pay on an imported unit. However, the company is not expected to pass on the benefit to consumers. Apple, in fact, will continue to sell the iPhone XR at Rs 49,900.
Not just Apple but Samsung too recently shut down its manufacturing facility in China after receiving a poor response to Samsung devices against Chinese smartphone makers like Oppo, Xiaomi and Huawei.
Samsung opened the world’s largest smartphone manufacturing facility in Noida, Uttar Pradesh. Said to be built at a cost of ₹ 4,500 crore, the Samsung’s Noida plant can produce 12 crore mobile phones every year. Samsung also has a manufacturing facility in Tamil Nadu.