14 DAY TRIAL // Apple is getting ready to invest no less than $1 billion in its Indian operations, according to a new report, as the company wants the local output to be used for international markets.
The Cupertino-based tech giant will thus invest in India through its partners, The Times of India reports, with Foxconn obviously expected to be one of the biggest names to benefit from this decision.
Apple’s plan is to use India as an alternative to China, especially as the company’s relationship with Chinese partners is still on thin ice given the trade tension with the United States.
And because the Indian output would increase, Apple wants to send more iPhones manufactured locally to global markets, according to the report. The factory in Chennai, for example, could take care of products that would be aimed at other countries, and Apple is believed to be working with a local component supplier for a series of investments that would streamline the whole process.
Made in India
Apple started building iPhones in India in order to comply with local regulations requiring companies that sell products in the country to also manufacture them in domestic facilities.
However, Apple started exporting iPhones to other countries earlier this year, and now it looks like the company is very keen on converting the local operations into a key hub for global exports.
It goes without saying that Apple has remained completely tight-lipped on its Indian plans for now, but for now, the company appears to be very keen on boosting local operations not only to benefit from the Indian smartphone market boom, but also to reduce its reliance on China.
Reports that made the rounds earlier this year indicated that the Cupertino-based tech giant wanted at least 30 percent of its production to be moved outside of China in the coming years in order to avoid any sanctions caused by any possible trade sanctions or import taxes.