Apple may be able to maintain its Competitiveness in a Key Market as a result of this approach.
One of Apple’s newest phones is now being manufactured in India. According to Reuters, Apple has began manufacturing iPhone 13 units in the country. While Apple did not specify which factory was to blame, a Reuters source stated that smartphones would be assembled in a Foxconn plant in the Tamil Nadu town of Sriperumbudur.
This is Apple’s fourth iPhone made in India. With the initial iPhone SE, the business began domestic production in 2017.
It’s not an unexpected decision. The Indian government has employed a variety of methods to compel corporations to manufacture in India, including investment requirements that require 30 percent of parts to be sourced locally. Import tariffs have also played a part. If Apple didn’t produce the iPhone 13 in India, it could be excessively expensive when compared to competing devices made within the country’s boundaries.
Apple has also been diversifying its manufacturing away from China in order to prevent trade wars and other challenges that could arise from a significant reliance on that nation. Apple’s production in India may be able to assist the company get through any short-term plant outages in China. The business was also apparently planning to shift some AirPod and MacBook production to Vietnam, but the pandemic, according to Nikkei, has put those plans on hold.
Despite worker unrest in India, the expansion continues. Workers at Wistron’s iPhone plant in the Narasapura industrial district rioted in late 2020, citing unpaid salaries, long hours, and harsh working conditions. Wistron was placed on probation by Apple until the contractor resolved the concerns, but it’s safe to assume the crisis didn’t aid Apple’s manufacturing expansion in the country.
In India, Apple presently uses Foxconn and Wistron to produce its devices. According to sources acquainted with Apple’s decision, the iPhone 13 will be produced at Foxconn’s Chennai plant. It’s unclear whether Apple plans to produce all four iPhone 13 variants in India at this time.
Apple is planning to open retail locations in India. Late last year, the business reportedly began hiring for its forthcoming retail shops in Mumbai and Delhi. Although Apple has not stated when the stores would open, speculations say that the first will open in Mumbai’s Bandra-Kurla Complex in August, followed by a second in New Delhi.
For the uninitiated, Apple only started its online store in India two years ago, and it still sells its items through approved retailers.