Apple long-time manufacturing partner Foxconn is said to be close to a deal with the Indian government to approve plans to create a manufacturing plant solely for Apple products such as the iPhone.
A report from the Economic Times of India claims that Foxconn is about to sign the deal for a 1,200 acre plot in Mahrashtra, at which will be a new $10 billion manufacturing plant for Apple. From when the deal is signed, sources estimate it will be 18 months before the plant is operational.
The report comes a year after Maharashtra Industry Minister Subhash Desai revealed details of Foxconn’s interest in the area. At that time, the Asian manufacturing company was reportedly in talks to construct an iPhone plant as part of its strategy to diversify beyond China.
Despite concerns over a slowdown in iPhone sales, Apple is increasingly focusing on markets like China, India and South America. Recently, CEO Tim Cook said that India has huge potential for the iPhone and other products, also noting a rollout of LTE technology and a huge segment of the market below 25 years old.
Apple has also been seeking to open Apple Stores in India, which would increase visibility and offer consumers purchasing and service options. In the past, Apple’s efforts were hampered by the country’s foreign direct investment trade policy, which mandates single-brand stores should source at least 30 percent of goods from domestic suppliers. However, a relaxing of the policy have given Apple the opportunity to open the stores.
SOURCE: The Economic Times.
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.