Apple's largest iPhone manufacturer, Foxconn, confirmed that it will begin mass production of high-end iPhones in India this year, according to Foxconn Technology Group Chairman Terry Gou, per Bloomberg. Currently, Foxconn mainly produces iPhones for Apple in China, but the company will initially invest $300 million to set up and scale iPhone production in India. The move signals a departure from Apple's India strategy, as the firm previously only made inexpensive iPhone models, like the iPhone 6S and iPhone SE, through iPhone supplier Winstron Corp. Here's what it means: Local production of Apple's high-end smartphones will make the company more competitive in India. The bigger picture: Apple's latest moves are unlikely to have an immediate impact on premium iPhone adoption in India. Regardless of Apple's move toward local production, the high price points of the company's premium iPhones will ultimately inhibit mass uptake of its devices. That's because about 75% of smartphones sold in India cost less than $250, and 95% cost under $500, according to The Wall Street Journal. And even though the average selling price of a phone in India is expected to rise 18% year-over-year (YoY) to between Rs 13,000 and Rs 15,000 ($190 and $210) in 2019, that still indicates that there isn't strong demand for premium phones in the market. This likely signals that Apple is investing in a long-term strategy to win over consumers in India. Interested in getting the full story? Here are two ways to get access: 1. Sign up for the Apps and Platforms Briefing to get it delivered to your inbox 4x a week. >> Get Started 2. Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to the Apps and Platforms Briefing, plus more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
Foxconn, which produces Apple iPhones in China, is to start mass production of high-end iPhones in India this year by initially investing $300m to set up and scale production. This marks a shift in Apple's Indian strategy; the firm previously only manufactured inexpensive iPhone models in the country. It's suggested Apple is seeking to boost sales of its iPhone models in India and improve brand perception there.