Apple in Boosting iPhone Sales - Here's Some Ways
The iPhone sales of Apple in the recent quarters have been going nowhere but down. And Cupertino is consecutive declines in the sales of its flagship product. And this was due to weakness in the smartphone industry and the company-specific shortcomings, which allowed competitors to grow.
Moreover, the problem of Apple in the iPhone was all over last quarter. Revenue from sales of its smartphones products dropped 12% annually. However, other segment showed remarkable growth. And the tech giant needs to solve this matter, especially it generates half of its total revenue from selling iPhones. Fortunately, the firm has made some steps to put the iPhone back on its track.
Production Base of Apple
Apple has been one of the biggest companies affected by the lengthy U.S.-China trade war, as it assembles its iPhones in the Asian nation. The good thing is, Apple contractor Foxconn discovered a way to help the firm escape that challenge. And it is by ramping up output in India. In 2015, Foxconn set up a shop in India. And currently, it has a couple of assembly plants there. While opening two more facilities to raise outputs, it also plans to expand the capacities of those plants.
As of now, the contractor is hiring 15,000 employees at its first India plant in a special economic zone in the southern part of the country. According to a report, 90% of the employees in the plant are women. And Foxconn gave them a wage just about $130 a month. And this is only about $4 per day, around a third of the average factory wage in China.
Then on the second plat of Foxconn, just a few hours away from the first one, currently employs 12,000 people. Foxconn has been recently making some changes to its factories to manufacture the latest iPhone models of Apple in India. Last month in India, they supposed to put iPhone XS and XR on sale.
But overall, Foxconn already has a base for its production shift. It can acquire low-cost labor. And also, the assistance of a favorable government desperate to boost its flagging economy and manage rising unemployment. So, it won't be a shock if the contract manufacturer of Apple begins to create more iPhone in India.
If Apple officially starts its manufacturing in India, it can run away from the tariffs the Trump administration plans to impose later this year. Moreover, this will save the management in Cupertino from making a tough choice - on whether to absorb the higher costs and taking a margin hit or passing on the same to consumers by increasing prices, which might affect sales hit.
Apple in the Indian Market
Meanwhile, the Indian government allowed Apple to start selling its iPhones directly in the country. Previously, web complex regulations were making Apple rely on third-party distributors and other partners, who adds a price on the products that are already expensive with import duties.
According to some government sources, Apple id going to spend a lot of money in retailing infrastructure in India. The tech giant wants to invest on INR 1,000 crore to build an online retailing platform and retail stores around major Indian metropolitan areas.
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