According to government officials, iPhone manufacturer Foxconn is planning to open operations including 10-12 factories and data centers by 2020 in India for the first time. Foxconn producing iPhones and iPads in India could result in lower prices on Apple’s hardware in the country where Apple’s hardware is sold at a price higher than many of its competitors.
The move is also said to be an effort by Foxconn to chase low wage costs as wages in China where it currently operates rise, Reuters reports. Foxconn’s intent to open shop in India maybe also be to achieve lower operation costs that make it more competitive against its rivals like Quanta that compete for Apple’s business in producing hardware.
Neither Foxconn nor Apple have officially commented on the electronics maker’s future in India, but local officials have said that Foxconn is sending scouts to find locations to set up shop. The officials added that Foxconn plans to use the facilities to produce electronics sold globally, not just in India.
For Apple CEO Tim Cook, India has remained a target of growth due to the population and number of mobile subscribers in the country. iPhone sales have risen in the country even with current pricing being higher than some of Apple’s competition. In the last quarter of 2014, Apple sold a half million phones in India compared to the million it sold across the entire year prior.
Apple has also been said to be supporting a number of resellers in the country as it doesn’t have an official retail presence of its own currently. The company has used financing plans to make its premium products more affordable in India in addition to offering lower tiered storage options and cheaper hardware for customers.
We also learned this morning that Apple Music, the company’s upcoming subscription music service, may be priced around $2-$3 in India compared to the $10-$15 price in the United States. This would put it in line with Rdio and others in the country.