Apple’s high-end iPhone production will move to India
The company, which is headquartered in California, is planning to move some of its high-end iPhone production to India. The move comes as the company is looking to diversify its manufacturing operations outside of China. Currently, Apple only manufactures lower-end iPhones in India. The company will start to assemble higher-end iPhones in India next year. According to the company, it plans to invest $356 million in the country and create up to 25,000 jobs. The move will also result in a reduction in its manufacturing footprint in China.
Apple started producing iPhones in India in 2011, and the company has since expanded the production of its iPhone lineup. Its lead suppliers in India are Foxconn and Wistron. Those companies are responsible for making the iPhone SE and iPhone 12. They will be making the iPhone 14 and 15 next year, and the company says that the production of iPhone 16 will happen simultaneously in both India and China.
While China is the largest source of iPhone production, the country still has a highly concentrated supply chain. The COVID-zero policy has drawn criticism. It has also slowed the flow of Apple’s products around the world. Apple has a long-term commitment to diversify its supply chain. By 2025, analysts expect Indian factories to produce 25% of iPhones.
Apple’s move to India is a strategic move in which the company aims to diversify its production away from China and boost customer satisfaction in the region. With the high-end iPhone market, India has strong potential as a premium manufacturing hub for Apple. Despite the recent controversy around Covid, the Chinese government has remained steadfast in their zero-Covid policy, which has disrupted production across factories across the country and highlighted some potential weak spots in the supply chain for Apple.
It will be made by Foxconn
While Apple has long assembled most of its iPhones in China, the Indian government has been pressing the company to make more of its devices locally. The move coincides with an effort to reduce reliance on Chinese factories, which have been blamed for the slow economic growth of India. The Indian government also has hopes that the new Apple iPhone manufacturing plant will make India a more competitive competitor to China. While the move isn’t exactly a game changer, it will certainly bring jobs and investment to the country.
Apple has made a concerted effort to replace Chinese production with like-for-like opportunities to increase economic development and create jobs. The company has already shifted some of its iPhone production to India in the last two years. Moreover, it is now opening a factory in Vietnam to manufacture wireless earphones and tablet computers. While China is still a big player in the global smartphone market, other manufacturers have shifted production to other countries.
As Apple continues to increase its local manufacturing capabilities, it has also been looking for ways to reduce iPhone prices in India. For example, it has sought permission to sell refurbished iPhones in India, which it claims will reduce the amount of electronic waste that is generated in the country. While the Indian government has made it clear that it does not support refurbished products, it’s worth noting that the company has a huge supply chain for its products.
Apple has been manufacturing iPhones in India since 2017, producing older models as well. However, the company is now also producing its new iPhone 14 in India. The company plans to sell the devices locally and export them to other countries. The first locally produced units are expected to be available for purchase in the coming days.
It will benefit Indian customers
The new move by Apple to manufacture some iPhones in India comes as the company is trying to boost its local market share. India is currently the world’s second-largest smartphone market, behind China. The move to increase production will help Apple lower its prices, which will be helpful for Indian customers. Indian manufacturing will also enable Apple to compete more aggressively with Chinese manufacturers. However, there are many questions surrounding the timing of this new move.
The three manufacturing partners that Apple has signed up in India include Foxconn and Winston. While Pegatron is not able to start production yet in its Tamil Nadu plant, it is in the process of importing machinery and training 5,000 people. All three companies plan to produce iPhones worth a total of Rs3.6 trillion in India within five years. It is estimated that 80 per cent of these units will be exported.
The iPhone production in India will be limited to the older-generation models. The company will still import newer models from China. But that could change if government incentives encourage more local iPhone sales. If the government decides to provide financial incentives, the company could see a significant upward swing in its sales in India.
Apple has a long history in India. The company will launch its retail store in September 2020, and is committed to expanding its work with local communities. The company has already committed to a number of initiatives in India, including a programme that supports renewable energy training. The new Apple iPhone manufacturing facility in India is another positive step toward strengthening the company’s commitment to the country.
While the company has been manufacturing iPhones in India since 2017, the new facility will manufacture the iPhone 14 for the first time. The phone will be assembled at Foxconn’s Sriperumbudur manufacturing facility near Chennai. Initially, the iPhone 14 will be sold in India as a local product, but it will also be exported to other countries.
It will boost supply
As more consumers demand high-end smartphones, Apple is ramping up production in India. The company is reportedly considering shifting production from China to India in a bid to boost supply. The country has the second-largest population in the world and lower labour costs than China. According to Ming-Chi Kuo, a reputed market analyst, India is a likely choice to replace China for manufacturing iPhones. However, the Chinese government has geopolitical issues with India, which can present challenges for Apple.
Several manufacturers have already invested in India to manufacture Apple products, including Foxconn. The company has a production facility in the southern state of Tamil Nadu, where it makes the older versions of the iPhone. Apple has made its presence felt in India for a few years, and this new move will likely increase the number of Indian-made iPhones. However, it is not clear whether this move will lead to lower prices for Indian consumers. With a cheaper labor cost, Apple may be able to adopt a more aggressive pricing strategy.
A recent JP Morgan report predicts that Apple will move 25 percent of its iPhone production to India by 2025. By that time, similar percentages of iPhones will be produced outside of China. This is a significant shift for Apple, which has long relied on China as a manufacturing hub. The Chinese government has imposed restrictions on business and manufacturing, which has put Western investors on edge.
The new Apple iPhone manufacturing in India will boost iPhone supply, as the company has expanded its production capacity in the country. Initially, Apple had planned to begin assembly in Chennai only two months after the global launch. But after the pandemic affected plans for a flagship store in the country, the company began manufacturing iPhones in India. Today, three contract manufacturers ship over a million units each quarter out of India. And by 2021, Apple plans to ship six million iPhones a year from its India factory.
It will benefit workers
There are a number of ways that the new Apple iPhone manufacturing in India will benefit its workers. The first step is to reduce the amount of Chinese labour in the production of Apple’s smartphones. Currently, Apple has three assembly partners, which helps it spread its manufacturing capacity around the world. This also allows the company to deal with political influences and international disputes more effectively. According to JP Morgan analysts, by 2025, Apple will produce one quarter of its iPhones in India. While China has been a major source of Apple’s iPhone production for many years, Vietnam has recently picked up its share of the workload. In fact, by 2021, the country could produce half of its iPads and half of its AirPods.
The government has actively supported the efforts of global gadget makers to set up local manufacturing operations. In 2017, the Karnataka Industrial Areas Development Board (KIADB) allotted 43 acres of land to a contract manufacturer called Wistron. Since then, the company has employed 2,000 workers and plans to hire 10,000 more by October 2020.
Other Chinese suppliers will also play a key role in the new Apple iPhone manufacturing in India. Foxconn, which has operations throughout China, will lead the assembly in Chennai. It will be backed by nearby Chinese suppliers, such as Lingyi iTech and BYD. These companies are also establishing operations in India to supply Apple with components.
While India’s iPhone manufacturing process is a highly specialized industry, the new Apple iPhone production site is set to benefit workers on all levels. The company is also making an investment in education and training for its workforce. Its $50 million Supplier Employee Development Fund will help the workers in these manufacturing partners. In addition, Apple has released its 16th annual People and Environment in Our Supply Chain Report, which details the company’s environmental efforts.
