Will Apple gradually leave China?

Apple may soon leave the Middle Kingdom, completely relocating the production of its

smartphones to india. This is due, among other things, to the uncertainty created by the mutual claims in the framework of the US-China trade war. Starting next year, new iPhones will start to be produced at Foxconn's facilities in the city of Sriperambuder, located in southern India (Tamil Nadu state). Foxconn itself comes from Taiwan, and in India, the company already has production, they are collecting smartphones for the brand Xiaomi. For Apple, this will be the first time that at least some device of the company has been produced in India.

Jobs and low taxes

Foxconn will have to invest in expansionproduction capacity, for which management has allocated nearly $ 400 million. Such maneuvers will create a quarter of a million jobs in India, and the Ministry of Industry of the country is pleased. For the Cupertino company, expanding Taiwanese production means the ability to produce more expensive models from its iPhone X in India. Whether Foxconn will move a customized assembly line from China to India, or start building a new one, is still unknown.

The company is the largest contract in the worldand has manufacturing facilities in many countries, including the United States. Only current problems with trade wars make it necessary to change the strategy for further development. Already, Foxconn is considering the option of placing capacity in Vietnam, this will minimize the consequences of the economic disputes of the two giants.

India is not less, but China is richer

In due time, having begun production of model iPhone SEin the Indian territory, Apple planned to reduce the tax burden, and it turned out that for Indian buyers and so an inexpensive smartphone has become even cheaper. The new smartphone even competed with previous models, released a year and two years ago. India is a fairly large market, as the consumer of smartphones is second only to the Middle Kingdom, however, most of the inhabitants have a low income. According to this indicator, the country ranks 112th in the ranking. Where in the list of 164 countries.

The leader of the Indian market at the moment is Xiaomi products, while the share of Apple products dropped to two percent.