Apple announced on Monday that it has begun assembling the iPhone 14 production in India. Now the analysts anticipate a significantly larger shift in the American giant’s future manufacturing, This marks the first time the current lineup has been locally produced in the same calendar year in the second-largest smartphone market in the world.
The smartphone is being produced in the Sriperumbudur factory near Chennai by the company’s international partner Foxconn. Later this year, the locally made iPhone models will start selling in the nation. Apple started assembling iPhones locally in India in 2017, but up until this year, the iPhone manufacturer had only used the country’s manufacturing facilities to assemble handsets from earlier generations. The iPhone 14 versions were introduced by Apple earlier this month.
Samsung, a competitor to Apple, has already established one of its largest plants in India and views it as a crucial global manufacturing base. The market leader in smartphones, Xiaomi from China, as well as its rivals Oppo, Vivo, and OnePlus all, assemble some of their products locally.
By 2025, according to analysts, Apple will gradually reduce its reliance on China, where it has been manufacturing the overwhelming amount of its gadgets for more than a decade, and turn India into a worldwide hub for iPhone production. According to research released earlier this month by JP Morgan analysts, Apple would increase its manufacturing capacity in India to create 25% of all iPhones by 2025 and relocate 5% of global iPhone 14 production there by late 2022.
In recent years, India has drawn investments from Apple’s manufacturing partners Foxconn and Wistron by providing generous subsidies as New Delhi works to establish the nation as a production base. According to JP Morgan analysts, the presence of the major international production companies, along with adequate labour resources and competitive labour rates, make India an enticing site.
The Indian iPhone supply chain has traditionally only provided older models. It’s interesting to note that Apple has asked EMS suppliers to produce iPhone 14/14 Plus models in India in 4Q22, just two to three months after Mainland China begins manufacturing. The fairly short time span suggests that India’s production is becoming more significant and that future iPhone deployments to India’s manufacture will probably increase, according to the research.
Will the iPhone 14 production in India have an impact on the price of the new iPhones?
The question is if the price of the model in India would decrease now that the iPhone 14 will be produced domestically. Apple will be able to save 20% on import duty by producing the iPhone 14 in India. Although there may not be any immediate adjustments in cost, these savings may have an impact on the model’s price in the future.
Apple rarely lowers the worldwide price for a local market. Remember that even though the iPhone 12 and iPhone 13 were made locally, Apple didn’t officially lower their costs. However, the business does collaborate with a few companies to provide promotional deals on external websites like Amazon and Flipkart. Now, the iPhone 14 might be affected by this as well. So far, nothing has been verified.
The fact that the iPhone 14 would only be constructed there and that almost any local component sourcing will have an impact on price in India is another reason why local production may not matter. As a result, even in the case of local manufacturing, the cost of production doesn’t truly decrease. Overall, the price of the iPhone 14 could not alter immediately.
Even though Apple only holds a small portion of the Indian market, the iPhone manufacturer has increased its investment there over the previous five years. Two years ago, it launched the nation’s online Apple Store, and it has since made it known that it is putting the finishing touches on the opening of the country’s first physical Apple Store.
This is the ongoing, most talked about topic among iPhone lovers these days. To stay updated on all the news sign up for our newsletter.
