Apple’s newest phone iPhone 14 will be made in India as the global tech titan bets big on the manufacturing prowess of the world’s second-biggest smartphone market after China.
In a statement at the time of signing of the contract, Apple said, “The new iPhone 14 line up introduces ground breaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India”.
Apple is one of the leading phone manufacturers in the world. The company is known for its innovative products and cutting-edge technology. Recently, it was announced that the latest iPhone 14 would be manufactured in India. This shift from China to India is a surprising move, but it makes sense when we consider the current political and economic climate.
There are many reasons why Apple may have chosen to manufacture their latest phone in India ––
• Labour Cost: One reason is that China’s labour costs are rising, which makes manufacturing there less favourable.
• Large Market of Smart Phones: Another reason is that as Donald Trump has taken office, he has imposed tariffs on electronics coming into the United States from China, which could make it more expensive for Americans to buy an iPhone 14. Apple likely wants to make an iPhone 14 cheaper for people in developing countries like India, so they’re shifting production to India rather than raising prices globally.
• Global Trade: Additionally, there’s been a trade war between China and India over the past year or so, which means that it will be easier and less costly to manufacture products in India while still accessing global markets.
• The rise of Indian Prime Minister Narendra Modi also plays a role in this decision; Modi has been vocal about his desire to bring more foreign investment into the country, including manufacturing companies.
It’s not yet clear whether Apple will partner with an Indian company or just manufacture iPhones themselves in India. If they do partner with a company, it will probably be with Tata since they already manufacture other Apple products like Mac computers and iPads locally.
By manufacturing the iPhone 14 in India, Apple can avoid any potential tariffs that could be placed on goods imported from China. The move to India is a big win for the country. It will create jobs and boost the economy.
However, some challenges come with manufacturing such a high-end product in India. The country does not have a strong track record of producing quality electronics. There is also the risk of intellectual property theft. Apple will need to carefully consider these issues before moving forward with production in India.
The manufacturing of the iPhone 14 in India will be done by a joint venture between Apple and the Indian company Wistron Corporation. Apple will supply 74% of the components and Wistron will manufacture the remaining 26%. This is an important shift for Apple because it is a symbol that they are looking to cater to the needs of their consumers worldwide. Several other companies are following suit with this shift in production, as well.
Apple is looking to take advantage of these trends and boost its sales in India. The iPhone 14 will be priced at around Rs. 54,000 in India, which is significantly lower than the price of the iPhone XS Max. This could help Apple to gain a larger market share in India.
For example, Samsung has already decided to make their upcoming flagship phone, Galaxy S9, in India. This decision comes amid tensions between South Korea and China as well as an overall slowdown in demand for Samsung products in China. This move by these companies reflects a change in consumer sentiment about buying from China vs. from India. With the recent tariff tensions between the US and China, many companies are now looking at Indian options. This is especially true when considering the increased labour costs and slowing demand in China itself.
Economic growth has slowed significantly in India, but it remains among the world’s fastest-growing economies, with a projected growth rate of 7% over 2019-2020 according to International Monetary Fund (IMF). In addition to these positive economic indicators, there are lower tariffs on imports into India as well as a lower cost per unit due to lower wages there.
Some experts predict that this shift may have negative implications for Chinese workers who currently produce iPhones. There are some challenges that Apple will face in India. The infrastructure in India is not as developed as it is in China, and the telecom industry is highly competitive. In addition, there are concerns about data security in India.
However, some economists say that this shift could lead to more jobs being created in China if increased wages can incentivize companies to stay there with new or expanded factories. The company believes that the growth potential is huge and that there is a lot of room for innovation.
Apple Inc said on Monday it will manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China.
According to sources, the Made-in-India iPhone 14 will begin to reach local customers in the next few days. Phones manufactured in India will be both for the Indian market and exports.
The iPhone 14 will be shipped from Foxconn’s Sriperumbudur facility on the outskirts of Chennai. Foxconn is the world’s largest contract electronics manufacturer and major iPhone assembler.
India’s vibrant market is turning out to be the sweet spot for the US tech giant, as the company reported a “near doubling” of revenue in the country in the quarter that ended June 2022.
Apple CEO Tim Cook, during earnings, call in July said: “We set June quarter records in the Americas, in Europe, and the rest of the Asia Pacific region. We also saw June quarter revenue records in both developed and emerging markets, with very strong double-digit growth in Brazil, Indonesia, and Vietnam and a near doubling of revenue in India.”
A recent report by JP Morgan on ‘Apple Supply Chain relocation’ predicted that Apple “is likely to move about 5% of iPhone 14 production to India from late 2022 and reach 25 % by 2025”.
It is also forecast that nearly 25 % of all Apple products, will be manufactured outside China by 2025 as compared to 5% at present.
“US-China trade tensions kicked off the production relocation cycle and the search for a ‘China+1’ manufacturing approach for the Apple supply chain from late 2018,” the report said.
COVID-19 put the brakes on this over the last two years, but with pandemic concerns easing, “we have seen more companies in the Apple supply chain re-accelerating supply chain relocation efforts”, the brokerage said in its report.
The iconic brand has a long-standing history in India that started more than 20 years ago. Apple launched its online store in the country in September 2020 and is set to deepen its commitment with the upcoming launch of the Apple retail store.
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