Guess which iPhone Apple will be manufacturing in India

If you guessed a commodity iPhone priced for the masses, you guessed wrong.

From Reuters’ Foxconn to begin assembling top-end Apple iPhones in India in 2019—source

Apple Inc will begin assembling its top-end iPhones in India through the local unit of Foxconn as early as 2019, the first time the Taiwanese contract manufacturer will have made the product in the country, according to a source familiar with the matter.

Importantly, Foxconn will be assembling the most expensive models, such as devices in the flagship iPhone X family, the source said, potentially taking Apple’s business in India to a new level…

The Hindu newspaper first reported on December 24 that the Foxconn plant would begin manufacturing various models of the iPhone. Reuters is first to report the size of the investment and the kind of phones to be assembled.

My take: In my experience, people who care about technology want the best tech, period. Or, as Tim Cook put it last year, defending the pricing of Apple’s first four-figure iPhones:

We found that people want to have the most innovative product available, and it’s not cheap to do that.

4 Comments

  1. Matt Tanase said:

    I suspect this has less to do with selling high end iPhones in India like the SE and is mostly a defensive move should the trade war escalate.

    1
    December 27, 2018
    • Gregg Thurman said:

      In one of our debates on who will win the trade war I pointed out that China has already lost. I said that because of the growing number of US firms shifting their manufacturing from China to Vietnam and other southeast Asian countries, with the reasons given as the political atmosphere in China.

      A growing cadre of western firms in India will force change in India’s burdensome bureaucracy making India even more attractive.

      I think Apple’s announcement regarding iPhone X production in India is its shot across Li Jenping’s bow, “We have alternatives to China” without getting in his face.

      Further, I think the capacity for this India production facility will have capacity for future expansion if needed (move production from China).

      China’s forced technology transfers, State sponsored theft of western IP, weak patent protection, etc., is starting to have blow back.

      Nothing changes behavior faster (short of war) than trade or the lack of it.

      3
      December 27, 2018

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