14 DAY TRIAL // With China becoming a major market for Apple in recent years, the Cupertino giant is said to have entered an agreement with assembler Foxconn to have its gadgets directly distributed from Zhengzhou plants into the consumer market.
DigiTimes claims to have learned from sources in the upstream supply chain that “Foxconn Electronics (Hon Hai Precision Industry) is expected to provide services in the future to help Apple sell products in China and will ship Apple products directly from its plants in Zhengzhou, China to the domestic market.”
As it pushes to expand its presence in the country, “…Apple needs support, and it is expected to rely on Foxconn to help it provide logistic and after-sale maintenance services in China,” according to the Taiwanese publication.
On a broader note, the sources said the two companies had a contract signed with China's customs authorities in September for shipping a “small amount of products” to the Chinese market.
Before signing this deal, Apple would waste time and resources by shipping products to Hong Kong or Shenzhen to complete export procedures, then have the products imported back to be distributed to stores.
The shipping costs will be drastically reduced as a result of this deal, which also reduces import taxes.