14 DAY TRIAL // iPhones manufactured by Apple’s Indian facilities are now being sold in Europe as well, as the Cupertino-based tech giant has started exporting these models to the largest markets on the Old Continent.
A report from The Economic Times reveals that Apple is trying to make the most from its Indian production capacity, and the first units were sent to European stores a few months ago.
Citing a Counterpoint Research analyst, the cited source reveals that Apple’s exports from India are currently running at low speed, with around 100,000 units currently shipped to select markets on the Old Continent.
All these units are iPhone 6s and iPhone 7, but Apple is believed to have recently discussed with its suppliers plans to expand the manufacturing to cover other models, including the upcoming iPhone 11. If this indeed happens, India could become a key production hub for Apple, especially if exports gain pace by the time the next iPhone launches.
Increasing Indian production capacity
Apple first started building iPhones in India in order to comply with the requirements of the local government, a move which helped the company reduce production costs and, at the same time, benefit from the local boom in the smartphone market.
Wistron, which is in charge of building the iPhone in India, started building the iPhone 7 earlier this year.
India could also help Apple reduce reliance on Chinese manufacturing plants. The trade tension between the United States and China could force Apple to look elsewhere for iPhone production in order to avoid additional taxes, and if the Indian capacity is increased, the country could become a large hub for the American giant for the manufacturing of its flagship product.
If everything goes according to the plan, Foxconn’s plant in India could build some 250,000 next-generation iPhones, and approximately 75 percent of the output would be specifically aimed at foreign markets.