FoxConn closes in on deal to manufacture Microsoft phones in India

FoxConn close to deal to manufacture Microsoft phones in India

Earlier this week at WPC, Microsoft’ COO Kevin Turner spoke more about the changes in Windows Phone/Mobile, noting that there will be changes in the manufacturing process and use of multi-tiered distribution. It was also reported yesterday by Digitimes that Microsoft is looking to outsource its phone manufacturing, closing plans in China and considering vendors in Vietnam and Taiwan.

Now, The Times of India is reporting that Microsoft is close to reaching a deal with Foxconn to manufacture phones in India. The report, spotted by Softpedia, says that while Foxconn is a Taiwanese contract manufacturer, their Chairman recently stated the company intends to invest $2 billion to set up 10-12 factories across India.

The Times of India says multiple sources have confirmed that Foxconn will produce two variants of Lumias, primarily for domestic consumption rather than importing phones to India. Outsourcing more phone production to India would be a very sensible move as WinBeta recently reported Microsoft is making big bets on selling Windows Phone in India.

While Windows Phone’s market share is only 1-2% better than other markets, the belief is that India is a market where Windows Phone is clearly a challenger to Android and budget Lumias have sold well.

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