Apple expands Indian manufacturing, will export iPhones and components

guest · Nov 25, 2019

Apple expands Indian manufacturing, will export iPhones and components
November 25, 2019
https://venturebeat.com/2019/11/25/...facturing-will-export-iphones-and-components/

Finland’s Salcomp, a supplier to U.S. tech group Apple, is to invest 20 billion rupees ($278.67 million) in India to make mobile chargers and other smartphone components from March 2020, the country’s technology minister said on Monday.

Salcomp, a major supplier of chargers to Apple for its iPhones, has reached an agreement to take over the entire facility of Nokia handsets lying closed for the past so many years, Prasad said.
Nokia, in a statement, confirmed that it had reached an agreement with Salcomp for the sale of the facility in Sriperumbudur, Chennai.

India has been trying to take advantage of the trade war between Beijing and Washington, which has disrupted supply chains and forced companies to look for alternative manufacturing locations.
On Monday, Prasad, showing a locally-assembled iPhone XR, said he expected Apple to expand its manufacturing operations further in India.
Apple’s Indian-made phones will also be exported, Prasad said [...]
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The Hammer · Nov 26, 2019

Diversifying the supply chain always a good idea.

guest · May 11, 2020

Apple considering massive shift of iPhone production from China to India
May 11, 2020
https://9to5mac.com/2020/05/11/iphone-production/

Apple has reportedly been in talks geared to shifting up to a fifth of iPhone production from China to India over the next five years. Most of the production would be for export.

Economic Times says that up to $40 billion worth of iPhones could be made in India. Only $1.5 billion worth of phones are sold locally, meaning that the vast majority of production would be destined for other countries.

Several meetings between Apple’s senior executives and top-ranking government officials over the last few months have paved the way for the iPhone maker examining the possibility of shifting nearly a fifth of its production capacity from China to India and scaling up its local manufacturing revenues, through its contract manufacturers, to around $40 billion over the next five years, say officials familiar with the matter.

If this happens, the iPhone maker could become India’s largest exporter, say experts.
‘We expect Apple to produce up to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn, availing the benefits under the production-linked incentive (PLI) scheme,’ a senior government official told ET.
The PLI scheme is a government one designed to incentivize foreign companies to manufacture in India, especially for export.
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guest · Jun 20, 2020

iPhone SE 2020 To Be Assembled In India To Avoid Import Tariffs
June 20, 2020
https://www.gizchina.com/2020/06/20/iphone-se-2020-to-be-assembled-in-india-to-avoid-import-tariffs/

People familiar with the matter revealed that Apple plans to assemble the new iPhone SE in India to avoid the country’s high tariffs on imported smartphones.
IPHONE SE 2020 IN INDIA
It turns out Apple has notified at least one Chinese supplier to start shipping 2020 iPhone SE parts to Indian production partners. In this way, the Cupertino-based company can avoid tariffs by producing new iPhones in India.

Over the past few years, we have been getting more and more reports concerning Apple’s shifting iPhone production to India. The assembly of the 2020 iPhone SE in India is expected to better meet the needs of the local market.
According to reports, the production partner of the 2020 iPhone SE is Wistron Capital.
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Two weeks ago, the Indian government had just issued a series of stimulus plans, hoping to attract more companies to set up factories in the country. According to reports, after relaxing the country’s factory equipment tax, Apple plans to transfer about one-fifth of China’s production capacity to India.
It is roughly equivalent to bringing $40 billion in revenue to local manufacturing in the next five years, making Apple the largest exporter in India.

By the way, Apple’s manufacturing partners began assembling iPhones in India in 2017. Apple India achieved sales revenue of $1.5 billion between March 2018 and March 2019.
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guest · Jul 17, 2020

iPhone production in India gets boost as Pegatron joins Foxconn and Wistron
July 17, 2020
https://9to5mac.com/2020/07/17/iphone-production-in-india-3/

iPhone production in India is to get a further boost as a third of Apple’s smartphone assemblers is reportedly setting up its first plant in the country. Foxconn and Wistron already have multiple assembly plants in India, and now Pegatron is said to be setting up its first plant there.

Bloomberg reports:

Apple assembly partner Pegatron is making preparations for its first plant in India, adding to a large influx of foreign tech investments in the country this year.
[...] With a number of factories in China, Pegatron is the second-largest iPhone assembler and depends on Apple for more than half of its business. Like its peers, it will set up in the south of India, according to a person familiar with its plans who asked not to be named. [...]
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Initially, iPhone production in India was solely for products sold within the country. But a combination of Apple’s desire to be less dependent on China, and a mix of carrot-and-stick initiatives by the Indian government to support its Made In India initiative has also seen production boosted to making models for export.
Additionally, more of the pre-assembly work is being done in India in response to tariffs on component imports designed to encourage more local manufacturing.
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guest · Jul 24, 2020

Apple begins assembling iPhone 11 in India
July 24, 2020
https://techcrunch.com/2020/07/24/apple-begins-assembling-iphone-11-in-india/

Apple’s contract manufacturing partner Foxconn has started to assemble the current generation of iPhone units — the iPhone 11 lineup — in its plant near southern city of Chennai, a source familiar with the matter told TechCrunch.

A small batch of locally manufactured iPhone 11 units has already shipped to retail stores, but the production yield is currently limited, the person said, requesting anonymity as matters are private. Apple, in general, has ambitions to scale up its local production efforts in India, the person said.
The local production of current iPhone 11 models illustrates Apple’s further commitment to India, the world’s second largest smartphone market, as it explores ways to cut its reliance on China, which produces the vast majority of iPhone models today.
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Piyush Goyal, India’s Minister of Commerce and Industry, tweeted on Friday that Apple had begun assembling iPhone 11 models in India. Apple did not comment on this story.
Assembling handsets in India enables smartphone vendors — including Apple — to avoid roughly 20% import duty that the Indian government levies on imported electronics products.
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guest · Aug 17, 2020

Indian iPhone production begins as Apple’s ambitions ramp up
August 17, 2020
https://9to5mac.com/2020/08/17/indian-iphone-production-begins-as-apples-ambitions-ramp-up/

Indian iPhone production has begun, initially with test production before mass production begins next month. Wistron has also begun recruiting 10,000 staff for its newest plant.
The move reflects another step forward in Apple’s more ambitious manufacturing plans for the country …

The New Indian Express reports.

Taiwan-based Wistron Infocomm Manufacturing (India) Pvt Ltd, one of the main contract manufacturers of Apple devices, is expected to start commercial production of the popular iPhone at its Narasapura plant in Kolar district in the coming days. In preparation for this, the company has already started hiring activities […]
India’s importance to Apple as a manufacturing center has grown considerably since the first Foxconn plant back in 2016.
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The combination of all these factors meant that Apple ramped up its efforts, with talk of shifting up to a fifth of iPhone production from China to India over the next five years, with most of the production destined for export.

Up to $40 billion worth of iPhones could be made in India. Only $1.5 billion worth of phones are sold locally, meaning that the vast majority of production would be destined for other countries.
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guest · Aug 20, 2020

iPhone 12 Made in India to Launch in Mid-2021
August 20, 2020
https://news.softpedia.com/news/iphone-12-made-in-india-to-launch-in-mid-2021-530857.shtml

Apple is projected to launch the iPhone 12 generation later this year, and as it turns out, the company is also planning major changes in terms of manufacturing.
More specifically, the iPhone 12 will be produced exclusively in India beginning with mid-2021, according to a report from Business Standard, with Wistron to take care of the entire process at a new facility near Bengaluru.

According to the report, Apple and Wistron have been working on this change for quite some time, and more recently, trial production of the iPhone started at the new plant.
Wistron has promised to hire as many as 10,000 new works in India, all to be able to meet Apple’s iPhone production ambitions in the country.
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While the new plant would focus exclusively on the iPhone 12, Wistron will also continue to make other iPhones too, including the iPhone SE. Previously, the company has been making older iPhone models too, including the original iPhone SE.
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guest · Aug 24, 2020

Apple Confirms iPhone SE is Now 'Assembled in India' For Local Customers
August 24, 2020
https://www.macrumors.com/2020/08/24/iphone-se-assembled-in-india/

Apple today confirmed that its second-generation iPhone SE is now being assembled in India for orders placed within the country.
In a statement shared with The Times of India, Apple said "iPhone SE packs our most powerful chip into our most popular size at our most affordable price and we're excited to be making it in India for our local customers."

The new iPhone SE is being assembled by Wistron at its facility in Bengaluru, according to the report. Wistron also assembles iPhone 7 models in India, and in the past, it has assembled the original iPhone SE and the iPhone 6s in the country. Last week, it was reported that Wistron could start assembling iPhone 12 models in India next year as well.
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Apple's largest manufacturing partner Foxconn has also made a push into India, where it now assembles iPhone 11 and iPhone XR models.
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guest · Sep 28, 2020

Apple suppliers commit to $900 mn investment to build capacities in India
September 28, 2020
https://www.livemint.com/technology...build-capacities-in-india-11601309158994.html

The Indian government’s production-linked incentive (PLI) scheme is bringing in big money into India as companies look to add local manufacturing capacities on the back of the scheme. According to a report by Reuters, three suppliers for Apple -- namely Foxconn, Wistron and Pegatron -- have committed $900 million in India over 5 years.

According to two industry executives, the investments are being made to add capacities and ramp up domestic production of mobile phones for Apple and other brands.
Foxconn and Wistron already make smartphones for Apple, while Pegatron has recently set up a local entity in India to kick start its operations here, according to filings with the registrar of companies.
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guest · Aug 8, 2022

Apple is reportedly more serious about iPhone 14 production in India
August 8, 2022

We’ve been hearing rumors about the upcoming iPhone 14 and iPhone 14 Pro for a while now. We’re expecting the regular models to retain most of the hardware included in the current model. On the other hand, the Pro variants could see some of the biggest changes brought to the iPhone in years. These might include the retirement of the notch, the introduction of an always on display (AOD) feature, and more.

When it comes to iPhone production, Apple typically relies on China the most. This has lead to some supply shortages during previous lockdowns in the aforementioned country. To avoid putting all of its eggs in one basket, the company will reportedly take iPhone 14 production in India more seriously. Reliable analyst Ming-Chi Kuo has shared on Twitter: [...]
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Apple potentially producing the iPhone 14 in China and India simultaneously would be a major achievement for the company. This way, if production slows in either of the two nations, the Cupertino overlord would still have some breathing space.
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guest · Aug 23, 2022

Apple's legendary secrecy is hampering India production expansion efforts
August 23, 2022

Apple's attempts to grow India as a manufacturing hub alternative to China is being slowed down by Apple itself, with the company's need for secrecy impacting attempts to get the two regions manufacturing new products simultaneously.

There is typically a lag of between six and nine months between China and India-based production ramping up, reports Bloomberg, with people familiar with the matter claiming Apple has talked to suppliers to try and shorten the lag.
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Part of the problem is Apple's culture of secrecy, in that it goes to considerable effort to maintain confidentiality of its new products with its assembly partners. While it has seemingly mastered the concept in China, it is thought that imposing similar rigorous controls to a second manufacturing base would be difficult to pull off.
There is also concern that Indian customs officials opening packages to check declarations could be another vector for product leaks.
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guest · Dec 8, 2022

Foxconn invests another $500M into India to boost iPhone production
By Karthik Mudaliar @heykarthikm - December 8, 2022

As part of its plans to expand its smartphone production capacity in India, Foxconn is ramping up its investment in the country. The world's largest contract electronics maker is investing an additional $500 million into its India business in order to expand its factories in the South Asian market.
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This market is becoming increasingly important for Apple, as it is slowly becoming a key hardware hub. In a filing with the stock exchange in Taiwan on Thursday, Foxconn stated that its Singapore subsidiary is providing the capital for its India entity, Hon Hai Technology India Mega Development Private Limited.

Another significant milestone was reached in 2022 when Foxconn India started making the iPhone 14, which was the first time that a new iPhone model was manufactured in India in the same calendar year as its global launch.
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According to a September report by JP Morgan analysts, Apple plans to move 5% of global iPhone 14 production to India by the end of 2022 and expand its manufacturing capacity in the country to produce 25% of all iPhones by 2025.
In addition to increasing its production capacity in India to meet the growing demand in the local market, Apple also plans to supply Indian-made products to global markets.

Source: TechCrunch
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pegas · Dec 9, 2022

A must step. Apple is suffering from the delivery of iDevices, especially iPhones from China due to the strict Covid measures imposed in Chinese factories.

guest · Jan 23, 2023

Apple shooting for 25% production in India, says trade minister
By William Gallagher @WGallagher - January 23, 2023

India's trade minister claims that Apple is intending to raise its local manufacturing to 25% from its current 5% to 7%, although he did not give any timescale.
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Shri Piyush Goyal, India's minister of commerce and industry, also did not specify what devices he expects Apple to produce in the country. However, his comments fit with previous reports that Apple intends to make one in four iPhones in India by 2025.

According to Reuters, Goyal was speaking at a conference where he was promoting India as a center of manufacturing.

"Apple, another success story," said Goyal. "They are already at about 5-7% of their manufacturing in India."
"If I am not mistaken, they are targeting to go up to 25% of their manufacturing," he continued. "They launched the most recent models from India, manufactured in India."
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guest · Jan 30, 2023

AirPods made in India closer to reality, as enclosure manufacturing begins
By Ben Lovejoy @benlovejoy - January 30, 2023

One of the steps Apple is expected to take in reducing its dependence on China is to have some AirPods made in India – in addition to those already made in Vietnam.

The company has already asked two of its AirPods suppliers to move some of that work to India, and it’s today reported that Apple has commissioned an Indian company to produce the plastic enclosures for the in-ear devices …
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AirPods made in India closer to reality
Bloomberg reports on the latest development.
With Jabil making the enclosures, and Foxconn and Luxshare making some of the electronics in India, that effectively allows for a complete manufacturing process within the country.

Bloomberg reports that Jabil’s current facility is a relatively modest one, measuring 858,000 square feet, and employing around 2,500 workers, but the plant could be extended (albeit with potential complications).
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