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iPhones may soon be made in US as Apple has asked Foxconn and Pegatron to look into this Possibility: Report

President-elect, Donald Trump referred to Apple multiple times during his campaign and vowed to slap a 45 per cent tariff on goods made in China

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New York, Nov 18, 2016: iPhones may soon be made in US as Apple has asked Foxconn and Pegatron to look into this possibility, reports said.

According to Nikkei Asian Review, key Apple assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, has been studying the possibility of moving iPhone production to the US.

“Apple asked both Foxconn and Pegatron, the two iPhone assemblers, in June to look into making iPhones in the US Foxconn complied, while Pegatron declined to formulate such a plan due to cost concerns,” sources said.
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But the sources have said that making of iPhones in the US will cost will more than double.

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The general perception among Americans that they are losing manufacturing jobs to other countries overlaps the Apple’s ‘rumoured’ prospect move.

President-elect, Donald Trump referred to Apple multiple times during his campaign and vowed to slap a 45 per cent tariff on goods made in China.

“We’re going to get Apple to build their damn computers and things in this country instead of in other countries,” Trump said at Liberty University in Virginia in January.

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Apple’s Chief Executive Tim Cook was quoted by CBS’ 60 Minutes programme in December 2015 that America simply did not have enough skilled workers for the production of iPhones.

“To make iPhones, there will need to be a cluster of suppliers in the same place, which the US does not have at the moment. Even if Trump imposes a 45 per cent tariff, it is still possible that manufacturers will decide to continue production overseas as long as the costs together with the tariffs are lower than the amount they need to spend on building and running production lines in the US,” sources familiar with the iPhone production process were quoted by Nikkei Asian Review.

Sources said that to make iPhones, America will need US government to subsidise local companies for domestic productions. (IANS)

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Sales of Apple iPhones Will Pick up in India with Onset of Festive Season: Experts

The momentum will come "at the back of cashbacks, buyback offers and deep discounting, especially on etailer platform during the 'Big Billion Day Sale' on Flipkart and 'The Great Indian Festival' on Amazon lined up from October 10 onwards

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The sales of Apple iPhones including the newly-launched premium iPhone Xs and XS Max will pick up in India with the country entering the grand festive season from October 10, industry experts said on Wednesday.

Apple brought its much-awaited line-up of iPhones to India on September 28.

iPhone XS with 4GB RAM and 64GB internal storage costs Rs 99,900; 4GB and 256GB variant is priced at Rs 114,900 and the 4GB with 512GB variant will come for Rs 134,900.

“We don’t have data yet but I think demand will be spread as gap between festive season and new iPhone launches is definitely there,” Tarun Pathak, Associate Director at Counterpoint Research, told IANS.

“The Indian consumers will look for all the options and might end up purchasing iPhones near the festive season, beginning with the auspicious period of Navratri festival from October 10,” Pathak noted.

Apple
A demonstration of the newly released Apple products is seen following the product launch event at the Steve Jobs Theater in Cupertino, California, U.S. Sept. 12, 2018. (VOA)

For an Indian smartphone user, carrying an iPhone has always been a style statement, irrespective of the price, and those who are in the Apple ecosystem will generate demand for the new iPhones, sooner or later.

Apple has also slashed prices of old-generation iPhones in India.

According to Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), Apple is aware of the brand pull that iPhone has for aspirational India and that’s why they have slashed prices for old-generation iPhones.

“While there would be a slight upstick for old iPhone sales, during and beyond the festive season, we believe they would be up for tough competition from other smartphone brands,” Ram told IANS.

Apple is set to announce its fiscal fourth quarter results on November 1 and will reveal iPhones sales globally.

Apple
An Apple store in Woodbridge, Virginia. (VOA)

Apple posted a revenue of $53.3 billion in its fiscal third quarter — an increase of 17 per cent from the year-ago quarter. International sales accounted for 60 per cent of the quarter’s revenue.

“With global warranty and comparative high price in India, people may end up buying new iPhones from somewhere else,” added Pathak.

According to Upasana Joshi, Associate Research Manager, Client Devices, IDC India, as per previous trends, the major demand is for the old model line-up with deep discounts and cash-back offers largely driven by e-tailers which accounts for more than 50 per cent of overall Apple volumes.

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“If Apple decides to further lower the pricing of previous line-up like iPhone 7, 8 and X, as the new models hit the market, there might be some action in the coming quarters.

The momentum will come “at the back of cashbacks, buyback offers and deep discounting, especially on etailer platform during the ‘Big Billion Day Sale’ on Flipkart and ‘The Great Indian Festival’ on Amazon lined up from October 10 onwards,” Joshi told IANS. (IANS)