Is Foxconn's return to India an opportunity for Apple?

BANGALORE, INDIA: After winding up its India operations last year, Apple manufacturing partner Foxconn is now reportedly weighing the options to reopen its manufacturing facilities in India again- a move which could bring down the iPhone assembly costs significantly in emerging markets like India.

The Taiwan-based contract manufacturer assembles a large chunk of Apple's products in its China facilities.

The comparatively lower production cost in India, as wages continues to rise in China could be the reason that Foxconn has started thinking of starting its India operations again. This will also help Foxconn to stay competitive as it serves a number of other tech giants such as Microsoft, Sony, Xiaomi as well, besides Apple.

Foxconn's return to India could give a major push to the Modi Government's 'Make in India' agenda, which aims to bring India's manufacturing potential back on the global radar again.

But does this move help Apple to get a major pie of the Indian market? Well, Apple is trailing behind Samsung and other local brands in India now. A local plant will certainly bring down the costs for the Apple units made to meet the demand of India and surrounding markets. Apple will also be in an advantageous position to compete with other brands in that scenario.