Apple Is Going to Manufacture iPhone in India

According to ZD Review, to speed up the process of “Made in India” project, Apple—one of the most influential technology giants in the world, is going to move its iPhone 12 product line to India in 2021, which means that Indian consumers are able to buy the iPhone 12 produced in their own country. The iPhone 12 becomes the 7th iPhone models produces in India.

At present, the low-price old-style models including iPhone SE, iPhone SE2, iPhone 6 are put into production in India. Last year, iPhone 11 has become the first flagship model produced in India. In fact, Apple is willing to develop its iPhone production base in India, and is going to shift 20% of its capacity used mainly for exportation to India, reported by Indian media Economic Times. In current period, Apple’s sales volume in India is about $1.5 billion, with a market share of 2%-3%, but the value of iPhones produced in India does not reach $0.5 billion, resulting in a heavy dependence on imports.

As a result, Apple’s willingness to speed up “Made in India” matches up with Modi government’s strategy to replace China as the “world factory”. Modi, the Indian president, communicates with Cook for lots of times, and plans $6.6 billion in incentives to woo smartphone makers. But for Apple, it still has to face lots of challenges producing iPhone in India. Demographic dividend and market potential will be the two factors we should concern about.