Apple Now Manufactures Nearly 7% of Its iPhones in India
Apple has increased its iPhone production in India to nearly 7% of total sales. This move reduces import costs, avoids tariffs, and supports India's "Make in India" initiative.
As per a recent report, Apple has ramped up the production of iPhones in India and now nearly 7% of its smartphones sold in the country are manufactured locally. The tech giant has been gradually increasing its manufacturing operations in India since 2017, when it started with assembling the iPhone SE model in the country. The move was aimed at reducing the company's dependence on China, where it manufactures most of its products.
In 2020, Apple started producing the iPhone 11 in India, and it has now added more models to its local manufacturing line, including the iPhone XR, iPhone 12, and iPhone SE (2nd generation). This has helped the company to not only meet the local demand but also reduce the cost of its products due to lower import duties.
According to the report, Apple has also increased its local sourcing of components, including circuit boards, camera modules, and connectors. The company is said to be working on expanding its local manufacturing capabilities to include other products such as iPads and Macs.
Apple's move to increase its manufacturing operations in India is in line with the Indian government's "Make in India" initiative, which aims to boost local manufacturing and reduce imports. The initiative offers incentives to companies that manufacture their products in the country, including tax breaks and easier access to land and financing.
The shift to local manufacturing also helps Apple to avoid tariffs and other trade barriers imposed by the Indian government on imported goods. Additionally, it enables the company to tap into the growing Indian smartphone market, which is expected to surpass the US as the world's second-largest market by 2022.
Overall, Apple's decision to manufacture more iPhones in India seems to be a win-win situation for both the company and the country. It helps Apple reduce its dependence on China and save on import duties, while also supporting the Indian government's initiative to boost local manufacturing and create more jobs.