Moscow, January 28 — “News. Economy” After the decision Foxconn about expanding its activities outside of China, another contract manufacturer of Apple gadgets now plans to do the same. Pegatron will create production capacity in three new countries: India, Indonesia and Vietnam, reports the Financial Times.
Currently, the share of Pegatron accounts for about 30 percent of the Assembly orders from Apple. Until now, the company is almost completely reliant on China, but now she intends to change the situation due to expansion in Indonesia, Vietnam and India.
President Pegatron si-Jung Liao noted that the press service of the company will soon report more detailed information about the extension. He also added that the production growth will depend on continuing trade war between the US and China.
Perhaps this is the solution to Pegatron due to the fact that Apple plans to begin production of the latest iPhone models in India. In addition, sales of smartphones and consumer electronics in China in recent years has slowed, forcing many companies to focus on other large markets, such as India.
Manual Pegatron in its statement, did not touch the Apple, but it’s hard to ignore the relationship between Pegatron and Foxconn, and reports that the build of the flagship models of the iPhone will soon begin in India. In addition, the Chinese smart phone market and consumer electronics in recent years has slowed, forcing the company to focus on other large markets such as India. Currently, Foxconn has factories in India and Vietnam, but they are not involved in the production of Apple devices.
Earlier it became known that Foxconn Technology Group is also exploring the possibility of expanding its presence in India to reduce dependence on China and to circumvent fees that can introduce US and help Apple to meet the requirements of the Indian regulators about the location of production in the country.
According to The Wall Street Journal, the next month after the Chinese New year celebration in India will come to Foxconn executives, including CEO Terry GOU to discuss further plans.
Foxconn assembles devices for several companies, using some of the operations of the factories in India. The transfer of production to India will ease dependence on Foxconn from China and potentially also reduce the impact of any trade war between the US and China to cooperate with Apple. For similar reasons, Foxconn is also reportedly considering the option of transferring part of production to Vietnam.
According to the Agency, Foxconn to invest $356 million in power to build phones Apple. This will expand the plant in Sriperumbudur (Tamil Nadu) where the contractor already produces phones for the Chinese company Xiaomi. Such expansion may create about 25 million new jobs, the Agency said.
It is assumed that the plant in Sriperumbudur will be the most expensive and current models of Apple. First about the early Assembly of iPhone in India since the beginning of 2019 reported by the newspaper the Hindu that the issue was discussed on December 25 at the meeting of the Cabinet of Ministers. While the government did not specify what models of smartphones will be assembled on Indian soil.
So far Apple has produced in India only iPhone SE and 6S. The production of SE was launched in may 2017, then the American company has released the first test batch of handsets produced by the plant are Taiwanese Corporation Wistron Corp. in the southern state of Karnataka.
Sale Apple in India is also focused on cheaper models, according to research firm Counterpoint, more than half of total sales are models older than iPhone 8. Theoretically, Foxconn may launch in India, iPhone model X, introduced last year.
Volume of production was reduced after the start of sales of new iPhone models XS and XR. However, the source admits that the details of the deal between Apple and Foxconn is still unknown and subject to change. In particular, there is evidence that if the Assembly is transferred from the existing factories Foxconn in China and other countries. It is also unclear whether the company to use any locally sourced ingredients.
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