Apple plans to manufacture its latest iPhone 14 model in India, ramping up production through contract manufacturer Foxconn, which operates a factory in Chennai.
According to a recent Bloomberg report, India is expected to begin manufacturing new iPhones just two months after they roll out of factories in China, narrowing the six-month assembly gap between the two countries. .
Rajeev Khushu, president of the Indian Electronics and Semiconductors Association (IESA), said the move by Apple represents a “significant shift” in trust in India’s big tech companies over the past two years.
“iPhone models were already made in the country, and now the new generation of mobile phones will also be made here,” he said. “In the past, companies like Apple would source older models and treat them safely. ”
India has been ramping up its manufacturing capacity over the years, with companies looking beyond cheap labor and skilled technology to tap into its growing design capabilities.
“Many large multinational companies [multinational companies] We now have a design center in India, the second or largest development center from our India-based headquarters,” said Khushu.
Prachir Singh, senior analyst of the smartphone market at Counterpoint Research, said the new investment from Apple bodes well for the future of smartphone manufacturing in India.
He said Apple is ramping up production in India, starting with the first wave iPhones 12 and 13, but the devices shipped five to six months after the initial launch. “We are very close to launch this time and we will see local shipments in India instead of imported stocks.”
Mr Singh cited government programs such as production-linked incentive schemes as the main reason why top contract manufacturers such as Foxconn and Wistron are increasing their capacity in India. “Higher capacity will help us meet our incentive goals,” he said.
Whether the Indian-made iPhone 14s will be cheaper remains to be seen. Early versions of locally-made iPhones still relied on China for critical components, but that could change as India seeks to expand its semiconductor manufacturing capacity.
India’s semiconductor market is expected to reach $300 billion in cumulative revenue by 2026, according to research by Counterpoint Research and IESA, with the share of locally sourced semiconductors likely to nearly double by 2026 there is.
“If the components are manufactured in India, the BOM should be reduced by a significant percentage. [bill of materials] Himanshu Sheth, an engineer who used to work for a major smartphone company in India, said: “This benefit is passed on to the consumer.”
Sheth added that having the iPhone 14 manufactured in India could also improve after-sales service. ”
Khushu hopes companies like Samsung and other smartphone players will follow Apple’s lead by announcing their latest models from India. “The evolution of Indian manufacturing on the world map is a slow and gradual process, but we are on the right track.”
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