Apple has started setting up its first plant in Bangalore, India. This is the first time that Apple has entered the Indian market for manufacturing iPhones. This year, Apple has opened its new official Apple stores in the Indian market which have been opened in Kurla, Mumbai, and Delhi. Team Cook himself had come here to inaugurate it.
India is currently emerging as the largest market in the world, while on the one hand there is war in some countries, on the other hand, India is standing stable and is maintaining its position in the world market. Many big mobile and technology companies have opened their manufacturing plants in India and are manufacturing their products from here and exporting them to the world market. Due to which India’s market is continuously opening up for other companies in the world and investment is increasing.
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India-made iPhones were projected to account for 13-14% of Apple global shipments in 2023, according to a leading analyst report. It is now being estimated that the importance of India and South Asian markets for Apple will increase significantly in the coming years.
Ming-Chi Kuo, an analyst at TF International Securities, said on Wednesday that Apple will see a jump in its India-made iPhone shipments and will constitute 20-25% next year. Kuo’s projection aligns with an earlier forecast from JPMorgan last year. Which suggested that Apple will shift 25% of its iPhone production to India by 2025 and further iPhone manufacturers will be based here.
Foxconn currently owns between 75-80% of India’s iPhone maker, said Kuo, who has yet to earn a reputation for his deep understanding of Apple’s supply chain and for making many details public. This dynamic is expected to transfer to some extent to India’s conglomerate Tata Group.
By making Indian company Tata an assembler, Apple can strengthen its ties with India. This step will increase the production of phones and other products in India in the future, which will increase the sales and profits of the manufacturers in the future. This will be important for the coming next decade.
India is becoming the biggest and important market for Apple. Apple is expanding its products and services in the country after opening two official stores this year. Apple has worked with HDFC Bank because Apple has taken a loan from this bank. Apple started assembling iPhones about 5 years ago.
The Cupertino firm shipped more than 2.5 million iPhone units to India between July and September. He says that this unit is being called the most luxurious quarter of the South Asia market so far. The sales of phones in this quarter have been much better than the previous quarter. Meanwhile, Google is also finding its feet. Google will soon start manufacturing the Pixel smartphone lineup in India. It is clear that there is bound to be competition between Apple and Google. Because India is emerging as a big market not only of South Asia but of the world.
The Indian government actively wants to set up manufacturing in India. For which India is continuously offering incentives worth billions of dollars. India wants big foreign companies to invest in India. This incentive has come at a time when many big companies want to break their agreements with China or reduce their dependence on them. Analysts always call this the “China+1” strategy. India’s market is open to all the big companies outside it.
Before this, mobile manufacturing was non-existent in India. Before this, neither mobile phones were manufactured nor assembled in India. After Narendra Modi came to the post of Prime Minister of India, companies in India were encouraged to invest in India. India’s IT Minister Ashwini Vaishnav had said in a previous program that our Prime Minister’s dream is to create Make in India and Digital India and today we have mobile manufacturing worth about 44 billion dollars and export of mobile phones worth 11 billion dollars. In India it is capable of generating huge employment and employment is increasing.
Kuo is expected to start production for the standard iPhone 17 in India in the second half of next year. Whose expected launch is expected to be in the first half of 2025. According to Kuo, this will be the first example of Apple manufacturing phones outside China. Kuo also estimated that Foxconn’s manufacturing in China would decline by 35% to 45% and 75% to 85% by 2024.
