India is a good place to manufacture smartphones because the government is helping and the people there are good at what they do. Apple is trying to sell more stuff in India instead of China. During April and August, more iPhones were sent abroad, indicating this trend has continued.
Manufacturing has grown and now Apple produces newer phones such as the iPhone XR, iPhone 11, and iPhone SE (2020). Apple began assembling iPhones in India in 2017. They mainly produced older models like the iPhone SE and iPhone 6S.
Manufacturing and assembly on site
In India, Apple has built factories and places to manufacture iPhones, which is why more iPhones are being shipped out. This makes iPhones cheaper and more competitive with other phones sold around the world, reducing labor costs and taxes. Apple can manufacture iPhones there and save money on labor and taxes.
Incentives and policies of the government
In order to get big companies like Apple to build things in India, the Indian government has done some things, like the PLI plan. PLI gives money to electronics companies that sell more than before, so they make more products in our country and sell them to other countries as well.
International demand is growing
The demand for Apple’s products keeps going up as more and more people like and buy iPhones around the world. They have factories in India, so they can keep up with the increasing demand. From April to August, Apple sent more iPhones overseas, showing they were able to keep up with international demands.
Economic impact on India
As more iPhones are sent from India to other countries, the Indian economy is developing in different ways.
The creation of jobs and the development of skills
There are many jobs created by Apple’s factories in India, either directly or indirectly. Even people with little training can find work in this industry, as it creates jobs for people working on production lines as well as people who design and fix them. This not only helped more people get jobs, but also made Indian workers more skilled.
Manufacturing sector boost
Due to Apple’s arrival in India, the electronic-making industry has grown, and other companies have also shown interest in investing in India. More people want parts and extra help, so companies that make those things are doing well.
Earnings from foreign exchange increased
Money brought into this country from other countries improves our finances and gives us more money to use later. This also results in fewer imports than exports, which strengthens the economy.
Future challenges and prospects
Other manufacturing hubs compete with us
There are still strong competitors in China and Vietnam, although Apple is making things in India. Because some countries have better ways of making things, like better roads and factories, and they can make a lot of things at once, they are better than other countries at making things. To stay competitive, India must continue to improve its factories and industries.
Infrastructure and supply chain upgrades
In order to remain a place where things are made, India needs better roads and ways to move things around. By building a stronger supply chain and solving issues with getting things from one place to another on time, companies such as Apple will be able to deliver their products more quickly and easily.
Growth and expansion potential
It is possible for India to expand its manufacturing industry, even though it may be difficult. The government is trying hard to promote programs like “Make in India” and the PLI scheme in order to help the country grow. India also has a large population, which is good for the future. With enough government and money, India can become a world-class manufacturer.
Frequently Asked Questions
In India, what is the current market share of iPhones?
Approximately 2% to 3% of the Indian phone market is occupied by Apple. Although Apple sells less devices than other brands in the overall market, Apple’s devices compete with the best products from other brands even though they don’t sell as many devices.
What are the benefits of Apple manufacturing iPhones in India?
Apple has many benefits from making iPhones in India. The company can produce products in a variety of places rather than relying only on one location. Because of the cheaper labor in India, Apple can save money on labor, save money on taxes, and meet the needs of Indian customers better and faster. By making Apple products in India, Apple can also save money on taxes.
Do all iPhone models come from India?
Currently, Apple does not manufacture some types of iPhones in India, such as the iPhone XR, iPhone 11, and iPhone SE (2021).