India Attractions: iPhone Manufacturer Foxconn in talks to establish local plant Apple

Foxconn Technology is in talks to manufacture the Apple iPhone in India, government officials said, in a move that could reduce the market prices of smartphones No.3 in the world where the US firm Samsung Electronics trails and local actors.

India could help mitigate Foxconn accelerating wage inflation in China, which has most of the iPhones, and basic production centers closer to the markets, where its main customers want to grow.

Lower production costs could also help keep Foxconn expects Apple orders amid intensifying competition with rivals of agile manufacturing and Quanta Computer Inc.

"Foxconn is sending an official delegation to scout for locations within a month," Subhash Desai, Minister of Industries Maharashtra state in western India, told Reuters.

Foxconn has said it aims to develop 10 to 12 facilities in India, including factories and data centers by 2020, but had no details.

The tech giant based in Taiwan, the biggest contract manufacturer of electronic products worldwide, declined to comment on the detailed plans on Thursday, citing commercial sensitivity.

Desai said Foxconn had yet to make any firm commitment, but said the group was looking to manufacture iPhones, iPads and iPods for both domestic as well as global sales.

Apple representatives in India did not respond to a request for comment on Thursday.

6 Apple iPhone 16GB sells for around 44,000 rupees ($ 687.82) in India, compared with Samsung Galaxy S6 32GB sold about 40,000 rupees ($ 625.29).

It has a market share of 10 percent in India, behind Samsung and local manufacturers like Micromax, which dominate the market, according to Counterpoint Market Research Monitor.

MAKE IN INDIA

A return of Foxconn - which was forced to close its doors in India last year after customer Nokia closed - would be a major victory for India, which both need to turn your tech boom in a boost production and employment.

India, under Prime Minister Narendra Modi, has tried to restart the production, but the country is competing with China, especially in technology where most factories are likely to mount units to begin with.

But local entrepreneurs are betting that global companies investing in the country, providers follow.

A lack of good infrastructure and suppliers are the biggest obstacles to making technology products in the country, forcing most of the more than 100 different phone companies from India for their products in the mature markets of China and Taiwan.

Apple is one of the largest customers of Foxconn - the trade name of Hon Hai Precision Industry Co Ltd - which also makes components for companies such as Xiaomi, Acer and Sony.

"The rise of smartphones in India indicates the time is right to focus on expansion plans and increased volume in India to a level comparable to the Chinese market in the next five years," said Cielo Li, vice president, OPPO phone maker.

India has the second largest number of mobile phone accounts after China. According to creating networking solutions company Cisco Systems, there will be 650 million smartphones in the country in 2019. The number of tablets will rise 9 percent to 18.7 million by then.