India will make around 25% of all iPhones sold globally this year
Apple Store opening in Saket, Delhi, India was rammed.
India will churn out twice as many iPhones this year, meaning up to a quarter of all the Apple smartphones sold globally will be made in India, local reports claim.
That is in line with existing expectations as revealed last year.
Apple iPhone partner, Foxconn will manufacturer up to 30 million iPhones in India this year and has been conducting trial runs in Bengaluru to ensure it can meet Apple’s strict quality standards and production targets.
Accelerating its transformation
The move comes as Apple’s Indian partners, including the Tatu Group, also ramp up manufacturing of the devices and components for those devices, representing a fast spurt toward far greater Made in India production targets. This reflects Apple’s push to deepen its presence in India as it faces political pressure to diversify from China, where it still maintains a positive relationship.
India accounted for 12-16% of all iPhones made last year. The roll-out of expanded manufacturing takes place at Foxconn’s second largest factory in the world, which is situated in India. Foxconn will also soon commence AirPods production, and the company also aims to manufacture other systems such as electric vehicles there.
“We want to move up the value chain as much as we can in India,” said Foxconn chairman Young Liu last August. “That’s what we will be doing in the ICT sector.” Foxconn has also begun to put together a chip packaging and testing facility in India.
Major impact on local economy
India is considering putting fresh subsidies in place to promote component manufacturing in India. It is also looking to cut import tariffs to support local manufacturing, particularly of high-end smartphones.
These investments are having an impact on India, with infrastructure development taking place across the nation to support the new manufacturing.
For example, Chennai Airport, which is close to one of Apple’s larger manufacturing bases, is seeing major investment in its cargo terminal to better handle electronics exports, particularly iPhone exports. Initially, the airport will handle around 70 tonnes of Apple products, with the ability to increase this to 100 tonnes in the future,” a local report says.
Apple company grabbed 22% of India’s smartphone market in Q3 and continues to enjoy significant growth in the region – even as a slight slump in Chinese iPhone sales appears to have turned around.
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