Looks like Modi’s strategies are working, and the Make in India campaign is truly making and impact. Yesterday, Times of India reported that Apple will manufacture in India, in a plant owned by Wistron, the Taiwanese company that assembles the iPhone SE. The plant is located in Bengaluru.
Expanding manufacturing and assembly from China to India includes lots of challenges for Apple. First off, Apple’s supply chain is extremely complex: 200+ suppliers from all over the world - including Panasonic, Sony, Samsung, Sharp, TSMC, Foxconn and 3M - provide parts for Apple products. Most of these manufacturing facilities are in China, Taiwan, Japan and the US, which means bringing components to India will be a challenge. India requires that 30% of the components are manufactured in the country - but Apple may get an exception from this.
What does this mean?
The fact that iPhone will be Made in India has a far number of advantages for locals. We will finally have a cheaper, competitively priced iPhone. Instead of the ridiculous INR 80k+ Indians need to pay for the latest iPhone, the price will come down to around INR 50-60k. The iPhone SE could be priced at about 30,000 INR, which is its retail price in the US.
More than that, Apple will be able to sell the iPhone directly to consumers, because the exemption on the 30% local input will allow the company to open official retail stores. This will further reduce prices and make Authorized Resellers a thing of the past. With this, Apple will be able to provide service to their customers in a direct manner.
Apple has not commented about manufacturing in India, and we sill do not know specific details, including when the manufacturing will actually begin. If all goes well, the iPhone will be manufactured in India this year.
As the China mobile phone market stagnates, India becomes a huge opportunity for companies like Apple. Manufacturing in India will mark a new era in the Apple’s gameplan for India.
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Source: TOI, The Indian Express, Quartz