Hon Hai Will Invest $356 Million In Indian Factories For The Iphone Project

According to foreign media reports, according to a person familiar with the matter, Apple will assemble high-end iPhones in India through Hon Hai as early as 2019 and plan to invest 356 million US dollars in Indian factories. This is the first time the Taiwanese manufacturer has made an iPhone in India.

Importantly, Hon Hai will assemble the most expensive models, such as the flagship iPhone X devices, which could take Apple's business in India to a new level, sources said.

The source said the work would be carried out at a factory in the southern Indian town of Sriperumbudur in Tamil Nadu.

M. C. Sampath, Minister of Industry of Tamil Nadu, told the media that Hon Hai would invest 25 billion rupees to expand its plant, including in the production of the iPhone.

The minister added that the investment could create up to 25,000 jobs.

Another source declined to give his name because he had no right to be interviewed by the media. A third source confirmed that Hon Hai plans to assemble the iPhone in India.

Indian newspapers reported for the first time on December 24 that Hon Hai factories would start producing various models of the iPhone. Reuters first reported on the scale of the investment and the types of mobile phones to be assembled.

low-end cellphone

So far, Cupertino, California-based Apple has only assembled lower-cost iPhone SE and 6S phones in India through a local subsidiary of Wistron Corp. at the Bangalore Technology Center.

The company's sales in India are also concentrated on low-end mobile phones. More than half of the company's sales are driven by older models than the iPhone 8 launched last year, according to Counterpoint, a technology research firm.

Industry analysts say Apple launched the expensive iPhone X last year, but it has cut production since it began selling new models of the XS and XR worldwide this year.

Nevertheless, it is still likely to prompt Hon Hai to produce the older iPhone X in India, where it sells cheaper models in an effort to gain a larger share of the world's fastest-growing major mobile phone market.

The full details of Apple's deal with Hon Hai remain unclear, and this may change.

It is not clear whether the assembly (business and equipment) of the iPhone has been transferred from Hon Hai's existing factories in China and elsewhere. It is also unclear whether the production in India is limited to assembly and whether it involves the production of any spare parts.

Apple spokesman Trudy·Miller declined to comment.

Hon Hai said it would not comment on matters related to existing or potential customers or any of its products. The company did not immediately respond to media requests to confirm whether it had invested $356 million in Tamil Nadu.

Apple's lower-than-expected Christmas quarter sales last month shocked investors and global parts suppliers.

Hon Hai has previously expressed concern about the demand for Apple's flagship products.