Made in India iPhones soon?
- The smartphone industry giant, Apple is now looking to diversify the production of its products outside China. There was various reasons of them moving out of China including those never ending lockdowns & protests as well as the increasing geopolitical tensions between US & China. This also lead to a shortage of new iPhone 14 Pro models.
- The country which Apple is mainly focusing to develop as their manufacturing hub is none other than our beautiful India! We currently make 5% of the total iPhones produced all over the world but many experts & analysts project that this share can reach up 20%! This would be really good for both Apple as their manufacturing costs would decrease & India as this would increase employment & many other things too.
Which country is manufacturing iPhones currently?
- Countries where iPhones are manufactured are China, the Czech Republic, Malaysia, Thailand & South Korea.
- All of their facilities are controlled by just 2 Apple manufacturing companies :- Pegatron & Foxconn. This Taiwanese duo currently dominates the iPhone manufacturing space.
Which company manufactures iPhone in India?
- Apple's 3 contract manufacturers - Foxconn, Pegatron & Wistron are the iPhones manufacturers in India. The production of iPhones in them will get a nice upthrust due to the Rs 41,000 crore Production linked incentive (PLI) scheme of the government in which all 3 of them have qualified successfully.
- After doing the capacity expansion, iPhones manufactured by Foxconn would grow by 150% in 2023. The goal would be to ship 40-45% iPhones from India v/s the current 2-4% according to an analyst Ming-chi Kuo.
Future plans of making Apple products in India
- According to JP Morgan, Apple will try that 25% of its products (including iPhones, Mac, iPad, Apple Watch, Air Pods) should be produced in India, the world's second biggest smartphone market. "Make in India" iPhones have already grown up 196% in 2021.
- Currently, Apple products manufactured in India include iPhone SE, iPhone 12, iPhone 13 & iPhone 14 (basic) models. As of now, no pro models are made in the country. They are all imported from outside & then sold. There are also talks of making iPads in India.
- But now, there are high chances that Apple will commence producing its Pro models in India as well, 85% of which are being made in China. As the iPhone India sales are rising, Apple can now easily take many steps to increase production here.
Will the iPhone prices in India come down?
- Its hard to say but as the production increases, there are chances that the Apple product prices in India go down. This is because when something starts manufacturing, pricing goes down in the local places because some extra charges are taken care of.
Tata to manufacture iPhones in India?
- The Tata group (India's one of the largest business empires) is also in discussions with Taipei's Wistron Corp, one of Apple's top vendors in India, to buy its manufacturing facility in Karnataka for Rs 5,000 crores. If this deal gets signed, Tata would become the first Indian company to build iPhones.
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