Samsung opened the world’s largest phone factory in India
A few years ago, Apple (AAPL) started manufacturing some iPhone models in India. Through manufacturing partner Wistron, Apple produces some iPhone SE and iPhone 6S models in India. The company is now set to do more local iPhone production in India, which could go a long way toward improving its bottom line in the country.
According to a report from the Economic Times, Wistron has secured Indian government approval to expand and upgrade its factories so that it can start manufacturing top-end iPhone models in the country. The approval means that Wistron will be able to produce the latest iPhones in India, which comes after Samsung (SSNLF) last year opened what it called the world’s largest phone factory in India.
Apple could see profit boost in India
Many of the iPhones that Apple sells in India currently are imported into the country, subjecting them to import duties that in turn crimp Apple’s profitability. Increasing local iPhone production in India could go a long way toward boosting the iPhone profit margin for Apple in the country.
Apple doesn’t break down its profits by country but reported a slight decline of about 0.5% YoY in its worldwide profit for the December quarter. Apple’s profit for the December quarter was about $20 billion. Google parent Alphabet (GOOGL), Microsoft (MSFT), and Amazon (AMZN) posted profits of $8.9 billion, $8.4 billion, and $3.0 billion for the December quarter, respectively.