As the US-China tension worsens, the world’s largest electronics seller has widened its India-made product profile and is preparing for exporting devices from the country. Apple is preparing for large-scale manufacturing here, amid slowing operations in China, say analysts.
Taiwan’s Foxconn has lined up $1-billion fresh investment in India and other partners are also boosting investments. Currently, Wistron and Foxconn — Apple’s two largest contract manufacturing partners — are making in India, and now a third one, Pegatron, is also setting its foot in the country.
Production will initiate in phases. Apple may make allowances for exporting the India-manufactured iPhone 11, lessening its dependence on China, two senior industry executives said.
A step Forward to “#ATMANIRBHAR BHARAT”
Addressing the 95th annual plenary session of the Indian Chamber of Commerce in Kolkata over video conference.
The coronavirus crisis should be turned into an opportunity to facilitate the creation of an ‘Atmanirbhar Bharat’, Prime Minister Narendra Modi said necessary moves have to be made to ensure that the imported products are manufactured in the nation. Reducing the outflow of payments.
Why is apple willing to shift it’s spot of production?
Tim Cook, Apple CEO, realistically stated that the company isn’t looking to make any quick shift from China owing to virus-related supply-chain interruption. However, since the situation worsened across the globe, Apple reconsidered its decision to keep most of the product manufacture in China.
India isn’t just well equipped with the manpower but also the technological supplies to support such an elevated level of production demand. It also happens to be one of the few countries to have an extremely low Covid-19 mortality rate. This fact adds to the reasons behind the big move Apple has made.
Availing the well financial rewards under the Production-Linked Incentive (PLI) scheme, Apple Inc. is expecting to produce $40 billion worth of smartphones in the country.
It is clear from the current situation of the correspondence that India still doesn’t have the required ecosystem structure to handle a large scale deployment. However, the continued faith of the Apple executives in their Indian investments goes on to reveal that they’re stepping in to endow their trust and confidence that India will be able to withstand their production demand efficiently, honoring Apple Inc.’s high globally venerated standards. It also means that decreasing their dependency on China could be a part of a larger scheme of things.
Another reason why the U.S. tech titans are willing to move there production from china is the political tension between the United States and China. This America- China tug-of-war is certainly going to benefit India for the long term, but for now, India needs to buckle up for meeting Apple’s high globally revered standards.
Apple gives a bite to all those who are seeking jobs
This move of Apple is largely going to treat the problem of unemployment in India. Amid the current crisis over 130 million Indians have already lost their jobs and 40% of them were the blue-collar employees but as the Prime Minister said while addressing the 95th annual plenary session of the Indian Chamber of Commerce in Kolkata over video conference – COVID 19 crises turn into the new boon of opportunities. Apple Inc. is may create over a billion opportunities for job seekers in India. From the IT sector to the migrant laborers’ everyone will be benefited.
Apple has already started it’s virtual recruitment programs for the freshers in India. The process will probably catch up on the speed after the pandemic ends.
Is this move going to affect the Price and Quality of the globally revered brand?
The company hasn’t cut prices yet as China manufactured handsets are still being sold in the Indian market but industry executives said that could be an option later on. Local manufacturing will help Apple cut off 22% import duty from its price in India. So the buyers can expect 15%-20% of the fall in the price of Apple manufactured products.
The manufacturing of the iPhone 11 is an indication that quality levels of India-made goods are on par with those manufactured in China. Which means that there’s either no or just a slight change in the quality of the products.
Narendra Modi government has developed the mobile phone manufacturing ecosystem in India. It’s just a beginning – Says telecom and IT minister Ravi Shankar Prasad in his tweet.
Prime Minister’s long term theory is going great so far but let’s see if the Indian ecosystem is able to meet the immediate production demand of Apple Inc.