India Takes a Page Out of China’s Playbook—Puts Up $6.7B to Attract Smartphone Assembly
Samsung, Foxconn, Wistron Corp and Pegatron Corp have applied for funds from India’s $6.65B scheme to increase smartphone manufacturing in the nation, according to government officials. Apple smartphones are already produced in India by Foxconn and Wistron, while Pegatron is moving forward to set up manufacturing operations. Samsung has a gigantic plant outside of New Delhi. Foxconn is assembling iPhone 11 models at a plant in southern India as Apple diversifies production outside of China. By making phones in India, Apple avoids the 20% import duties. The locally-made iPhones have begun to hit retailers in India. Analysts expect Apple to eventually lower the $850 selling price to better compete in the market. Foxconn reportedly assembles the iPhone 11 and XR in the region, while Wistron takes care of the iPhone 7. In Q120, 29% of Apple's smartphone shipments in India came from domestic manufacturing facilities, according to Counterpoint Research data. The number dropped to 17% in Q2 as the pandemic hit.