Apple is making a significant wager on the production prowess of India, the world’s second-largest smartphone market behind China, with the production of its newest device, the iPhone 14.
Based in Cupertino, California With the release of the iPhone SE in 2017, Apple began producing iPhones in India. Apple currently produces some of its most technologically advanced iPhones here, including the iPhone SE, iPhone 12, iPhone 13, and the new iPhone 14.
The iPhone 14 models, which Apple Inc. revealed earlier this month, feature an upgraded camera, potent sensors, and a satellite communication feature to deliver SOS texts in an emergency. The iPhone 14, Plus, Pro, and ProMax are the four new variants in the range.
The Made in India iPhone 14 will reportedly start shipping to local customers in the coming few days. India will produce phones for both the domestic market and export.
The Foxconn plant in Sriperumbudur, which is outside of Chennai, will handle the shipment of the iPhone 14. The largest contract electronics company and primary iPhone assembler in the world is Foxconn.
In response to inquiries, Apple told PTI in a statement that it was “happy” to be producing the iPhone 14 in India.
The new iPhone 14 series features ground-breaking new technologies as well as crucial safety features, the company claimed.
The iPhone 14 was released on September 7, 2022, and users in India, among other regions, have had access to it since September 16, 2022.
In India, the recognizable brand has a rich history that spans more than 20 years. With the impending opening of an Apple retail shop, Apple is poised to strengthen its commitment to the nation where it opened its online store in September 2020.
The company’s latest manufacturing expansion draws on a number of its national initiatives, including the App Design and Growth Accelerator in Bangalore and collaborations with neighborhood organizations to encourage community training and development in renewable energy.
Since the US IT giant claimed a “near twofold” of sales in India for the three months ending in June 2022, the country is proving to be a sweet spot for growth.
During an earnings call in July, Apple CEO Tim Cook said: “In the Americas, Europe, and the rest of Asia-Pacific, we broke records for the June quarter. With really significant two-digit growth in Brazil, Indonesia, and Vietnam as well as a nearly doubling of sales in India, the June quarter also saw revenue milestones both in emerging and developed markets.
According to a recent JP Morgan analysis on “Apple Supply Chain Relocation,” Apple “is anticipated to relocate roughly 5% of iPhone 14 manufacturing to India starting late 2022 and reach 25% by 2025.”
Additionally, compared to the current five percent, it is predicted that by 2025, close to twenty-five percent of all Apple devices will be produced outside of China.
The cycle of production migration and the quest for a “China+1” manufacturing model for the Apple distribution chain began in late 2018, according to the report.
Over the past two years, COVID-19 put a stop to this, but now that the pandemic threat has subsided, “we have observed more enterprises in the Apple distribution network re-accelerating supply chain movement activities,” the brokerage reported.
“Supply chain concerns” (such lockdowns associated with COVID-19 in Shanghai and Shenzhen) are likely to be the primary factor pushing these changes within the next two or three years, it noted.
Given their lower labor costs, adequate skilled manpower support, and attractive policies and government help, Southeast and South Asian nations (like India, Vietnam, and Thailand) have emerged as preferred locations for geopolitical diversity outside of China for Apple food supply chain vendors, according to JP Morgan analysts.
While India’s shine has been enhanced by the burgeoning smartphone market, New Delhi’s regulatory initiatives in the electronics industry have prodded major international vendors to grow in India and encouraged new businesses to establish bases. India is redoubling its efforts to replicate its smartphone manufacturing success in other areas of the electronics ecosystem as it makes serious steps to reduce its dependency on imports.
The government has announced enticing incentives to promote domestic production and export of IT products, telecom, and networking gear, and a Rs. 76,000 crore semiconductor programme was revealed late this year to promote domestic chip and display panel production.
The Center last week increased the financial assistance for new operations (across technological nodes) to cover 50% of the project cost in an effort to entice global giants like Intel and TSMC.