Apple began assembling iPhones in India in 2017, but until 2022, the Cupertino, California-based tech giant was assembling older generation iPhone models in India. Apple launched the iPhone 14 model in September, and the company began assembling the new iPhone 14 in China 10 days after the global launch of the iPhone 14 series. .
Recently, JP Morgan analysts said Apple will expand local manufacturing capacity in India to produce 25% of all iPhones by 2025.
China’s mistake in following zero Covid restrictions and the upcoming worker unrest at Apple’s biggest contract manufacturer Foxconn’s Zhengzhou manufacturing facility will play a major role in boosting the assembly of iPhone models in India. However, India’s Product Linked Incentive or PLI scheme also deserves credit for making India an attractive place to assemble iPhones.
“India is a very attractive market for smartphone players. India has almost the same population size as China and a high birth rate. Therefore, many local and international consumer electronics brands see India as an important strategic market. Moreover, the continued improvement and maturity of production technology coupled with supportive government policies have seen an increase in domestic smartphone production,” said Prachir Singh, Senior Research Analyst at Counterpoint Research. told ABP Live.
iPhone India has three assembly partners Foxconn, Wistron and Pegatron, all of which are in the PLI scheme and are expected to ramp up production in the coming years.
India will account for 3-4% of global iPhone manufacturing in CY2021, and Counterpoint Research believes it will grow to reach 7-8% by CY2023.
Mumbai-based Tata Group also started talks this year to buy Wistron’s Indian plant in the southern state of Karnataka for Rs 4,000-5,000. Analysts said this would be a big boost to India’s local manufacturing capacity.
“Having an Indian company to make iPhones would be a huge boost to India’s efforts to challenge China’s dominance of electronics manufacturing, reducing Apple’s reliance on China. global electronics brands can be persuaded to consider assembling in India, so they will not rely solely on China.”
India’s smartphone market and domestic demand, the world’s second-largest growing smartphone market after China, is also the main reason why Apple chose India as the manufacturing destination for “China Plus 1.”
As China seeks to lure back disgruntled employees at Foxconn’s Zhengzhou factory, the largest iPhone supplier, India is seizing the opportunity to sell iPhones that are assembled exclusively in Foxconn’s China factory. You can even start building the Pro model.
“This is a good opportunity to acquire Pro model manufacturing/assembly and expand our operations in India to try to establish India as a manufacturing and export destination for China + 1. India.
“India is an attractive destination to assemble iPhones only to the extent that it is less disruptive than we see in China. It must compete with China on labor and long-term viability as a global export hub.