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<ul><li><keyword id="6354427" type="General" weightage="100" keywordseo="apple" source="Orion">Apple</keyword> has started manufacturing components for <keyword id="1660289" type="General" weightage="80" keywordseo="airpods" source="Orion">AirPods</keyword> in India.</li><li>A supplier of the company is manufacturing enclosures for AirPods.</li><li>The components are being exported to Vietnam and China.</li></ul> In a push to domestic manufacturing, Cupertino tech giant Apple has reportedly started manufacturing components for AirPods in the country. This is part of the company’s strategy to diversify its production across countries, reducing its dependence on China. According to a<a href="https://www.bloomberg.com/news/articles/2023-01-30/apple-supplier-in-india-begins-making-airpods-parts-for-export"> report</a> by Bloomberg, Jabil Inc., a major Apple supplier in the country has started manufacturing components for AirPods as part of the company’s push to expand production in India. This comes after Apple started manufacturing<a href="https://www.bloomberg.com/news/articles/2023-01-30/apple-supplier-in-india-begins-making-airpods-parts-for-export"> iPhone 14</a> in the country soon after its launch. <cmsannotation type="cmsannotation" annotationid="AirPods second device to be partially manufactured in India" comment="subhead" text="AirPods second device to be partially manufactured in India">AirPods second device to be partially manufactured in India</cmsannotation> So far, Apple’s production in India has been limited to iPhones. With the production of components for AirPods, the true wireless earbuds have become the second Apple device to be partially manufactured in India. The components reportedly being manufactured are the enclosure or plastic bodies, so there is still some time before the AirPods can be fully manufactured in the country. These enclosures are reportedly being exported to Vietnam and China. While there’s still some time before AirPods is fully manufactured in India, the government has been pushing for domestic manufacturing and has also provided initial clearances to over a dozen Chinese suppliers to set up joint ventures with Indian companies and begin production. Luxshare Precision Industry Co Ltd., a major Apple supplier that makes AirPods is among the dozen companies that have received approval to begin operations in India. The Indian government is planning to offer financial incentives as part of its production linked incentive (PLI) scheme for production of wireless earphones and smartwatches. Apple has been pushing iPhone production in India for some time now. A recent<a href="https://www.businessinsider.in/tech/mobile/news/40-of-indias-mobiles-export-in-2022-23-are-iphones-india-g20-sherpa-amitabh-kant/articleshow/96471669.cms"> report</a> had revealed that around 40% of smartphone exports in 2022-2023 were by Apple. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/apple-launches-macbook-pro-and-mac-mini-with-new-m2-chipsets-in-india-price-specs-and-features/articleshow/97080949.cms">Apple launches MacBook Pro and Mac mini with new M2 chipsets in India – price, specs and features</a> <a href="https://www.businessinsider.in/tech/mobile/news/iphone-13-becomes-the-best-selling-smartphone-in-india-in-q4-2022-first-iphone-ever-to-join-the-list/articleshow/96794819.cms">iPhone 13 becomes the best-selling smartphone in India in Q4 2022, first iPhone ever to join the list</a> <a href="https://www.businessinsider.in/tech/mobile/news/made-in-india-smartphone-shipments-decline-by-8-amid-decline-in-demand/articleshow/96562322.cms">Made in India smartphone shipments decline by 8% as consumer demand declines: Counterpoint</a>

After iPhones, Apple reportedly starts manufacturing components for AirPods in India

<ul><li><keyword id="19894961" type="General" weightage="20" keywordseo="Apple" source="keywords">Apple</keyword> will reportedly make <keyword id="20656465" type="General" weightage="20" keywordseo="iPhone-16-Pro" source="keywords">iPhone 16 Pro</keyword> models in India this year.</li><li>Foxconn is expected to make the iPhone 16 Pro models at its facility in Sriperumbudur.</li><li>The iPhone 16 Pro models will reportedly be imported in the first few weeks.</li></ul> In a boost to Apple’s iPhone production in India, the Cupertino tech giant is set to manufacture the flagship models in its upcoming iPhone 16 lineup soon after its launch. Last year, Apple produced the<a href="https://www.businessinsider.in/tech/mobile/news/iphone-15-iphone-15-plus-with-usb-type-c-port-improved-cameras-launched-starting-at-799/articleshow/103615581.cms"> iPhone 15</a> in India and this was available from day one. Soon after this, the iPhone 15 Plus was produced in India by Pegatron. The<a href="https://www.businessinsider.in/tech/mobile/news/iphone-15-pro-pro-max-can-record-3d-videos-that-can-be-viewed-on-vision-pro-in-a-magical-way/articleshow/103616220.cms"> iPhone 15 Pro and iPhone 15 Pro Max</a> were imported in the country. According to a<a href="https://www.moneycontrol.com/technology/apple-to-make-iphone-16-pro-and-pro-max-models-in-india-this-year-sources-article-12779508.html"> report</a> by Moneycontrol, the iPhone 16 Pro models will also be produced in India this year. The iPhone 16 Pro models will reportedly be assembled by Apple’s partner Foxconn at its facility in Sriperumbudur, Tamil Nadu as part of the company’s plan to diversify production from China. "Every year, Apple seeks to deepen its manufacturing capabilities with partners in India. Production of Pro models is something that has been under consideration for the last couple of years. This year, Apple will manufacture the Pro and Pro Max models in India to make sure the India-assembled iPhone 16 Pro models are available in the country after the launch,” the report said, citing a source familiar with the matter. <h2>Initial devices to be imported</h2>As the iPhone 16 Pro models will be produced sometime after its launch, the initial devices will be imported, and this will cost Apple less this year as the Indian government has reduced the<a href="https://www.businessinsider.in/budget/news/budget-2024-customs-duty-on-mobile-phones-chargers-and-more-reduced/articleshow/111962490.cms"> basic customs duty (BCD)</a> on mobile phones as part of Budget 2024-25. The iPhone 16 is set to be made available on the first day of sales in India and it will be shortly followed by iPhone 16 Plus. <h2>Apple’s sales in India to grow by over 20% this year</h2>According to industry estimates, iPhone shipments are projected to increase by over 20% this year on the back of domestic manufacturing support and strong distribution. Apple saw robust sales of around $8 billion in the country in FY24, an increase of around 33% year-on-year. Apple shipped over 10 million iPhones in 2023 in India, up from 6 million in 2022. The company recorded a 6% market share in the Indian smartphone market in 2023. Experts have said that there is a definitive trend of Apple attracting many first-time users for its newly launched iPhones in India, alongside the strong sales of previous-generation devices. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/pixel-9-series-design-and-specs-revealed-ahead-of-launch-next-month/articleshow/112039063.cms">Pixel 9 series design and specs revealed ahead of launch next month</a> <a href="https://www.businessinsider.in/budget/news/budget-2024-customs-duty-on-mobile-phones-chargers-and-more-reduced/articleshow/111962490.cms">Budget 2024 – Customs duty on mobile phones, chargers and more reduced</a> <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-nord-4-with-metal-back-snapdragon-7-gen-3-launched-in-india-starting-at-32999/articleshow/111787031.cms">OnePlus Nord 4 with metal back, Snapdragon 7+ Gen 3 launched in India starting at ₹29,999</a>

Apple to manufacture iPhone 16 Pro models in India soon after launch

It seems <a href="http://www.businessinsider.in/searchresult.cms?query=Apple&amp;sortorder=effectivedate">Apple</a> doesn’t want to wait for Indian government’s approval to <a href="http://www.businessinsider.in/searchresult.cms?query=manufacturing+in+india&amp;sortorder=effectivedate">start manufacturing </a>its <a href="http://www.businessinsider.in/searchresult.cms?query=iphones&amp;sortorder=effectivedate">iPhones</a> in India. 
 As per various reports, <keyword id="6354427" type="CITY" weightage="100" keywordseo="Apple">Apple</keyword> is going to start manufacturing <a href="http://www.businessinsider.in/searchresult.cms?query=iphone+SE&amp;sortorder=effectivedate">iPhone SE</a> model first in India from its Karnataka plant. 
 Apple will start assembling 3-4 lakh units of its <keyword id="3262611" type="UNKNOWN" weightage="20" keywordseo="iPhone-SE">iPhone SE</keyword> model at the plant being set up by contract manufacturer Wistron. 
 
"It is Apple's first such venture in India... The demands they have made are for the larger plans of the company to really scale up manufacturing in India,” a senior government official told ET, requesting anonymity. 
 
A person in the contract manufacturing industry told ET Wistron is ready to start assembling the phones and the duty concessions are not connected to the plant. 
 
Apple still awaits Indian government’s nod on tax concessions. 
 
"While the immediate advantage would be the tax benefit of 10-12% if it is manufactured (here) compared with imports, it will also give Apple an edge in India, which is the fastest-growing large market, as opposed to slow growth in China,” Navkendar Singh, senior research manager, client devices, at IDC India, told ET. 
 
It is noteworthy Apple has sought concessions such as 15-year exemption from customs duty, assurance on continuing countervailing duty exemptions on electronic components for the same time period, besides clarity in policy for selling refurbished goods here. It has also sought additional benefits under the Modified Special Incentive Package Scheme (M-SIPS). 
 
However, it is yet to whether the government will concede to the demands, especially keeping goods and services tax (GST) in mind.

This is the iPhone Apple will manufacture first in India

<ul><li>Apple has begun assembling its new <keyword id="10609587" type="General" weightage="20" keywordseo="iphone-14" source="Orion">iPhone 14</keyword> at the Foxconn facility in <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>.</li><li>According to a JP Morgan analysis, Apple is likely to move 5% of its new <keyword id="6354606" type="General" weightage="100" keywordseo="iphone" source="Orion">iPhone</keyword> 14 production to India by the end of this year.</li><li>The locally-assembled iPhone 14 will go on sale in the country in the fourth quarter.</li></ul>Apple has begun assembling its new iPhone 14 at the Foxconn facility in India, a first in years when a new iPhone is being assembled within weeks of its global launch in the country, the tech giant confirmed on Monday. The locally-assembled iPhone 14 will go on sale in the country in the fourth quarter, as the company bolsters its local manufacturing. Foxconn is assembling the new iPhone 14 at its Sriperumbudur facility near Chennai. "The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We're excited to be manufacturing iPhone 14 in India," Apple said in a statement. The tech giant first started manufacturing iPhones in India in 2017 with iPhone SE. The tech giant manufactures some of its most advanced iPhones in the country, including iPhone 11, iPhone 12 and iPhone 13, at the Foxconn facility, while iPhone SE and iPhone 12 are being assembled at the Wistron factory in the country. As India doubles down on local manufacturing of technology products, Apple is likely to move 5 per cent of its new iPhone 14 production to India by the end of this year, and 25 per cent by 2025, according to a JP Morgan analysis. Analysts have earlier predicted that Apple has shortened the production period of its new iPhones in India this year, barely six weeks or so from the production cycle in China. Next year, Apple iPhone 15 may see its production at the Foxconn and Wistron manufacturing facilities in India at the exact production time with China. "India's iPhone supply chain has historically supplied only legacy models. Interestingly, Apple has requested that EMS vendors manufacture iPhone 14/14 Plus models in India in 4Q22, within two to three months of the start of production in Mainland China," according to the JP Morgan report. "The much shorter interval implies the increasing importance of India production and likely higher iPhone allocations to India manufacturing in the future," the report noted. "We believe Apple only produces iPhone 14/14 Plus models in India now due to the more complex camera module alignment of the iPhone Pro series (done by EMS vendors) and higher local market demand for the iPhone 14 series (tax savings)," it added. Buoyed by the ease-of-doing business and friendly local manufacturing policies, Apple's 'Make in India' iPhones will potentially account for close to 85 per cent of its total iPhone production for the country this year. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/nifty50-sensex-start-on-a-negative-note-ahead-of-rbi-policy-meeting-this-week/articleshow/94445282.cms">Nifty50, Sensex start on a negative note ahead of RBI policy meeting this week</a> <a href="https://www.businessinsider.in/business/startups/the-zepto-boys-competition-that-amazon-never-saw-coming/articleshow/94399979.cms">The Zepto Boys: Competition that Amazon never saw coming</a>

Apple starts manufacturing iPhone 14 in India

As <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> doubles down on local <keyword id="6362048" type="General" weightage="20" keywordseo="manufacturing" source="Orion">manufacturing</keyword>, <keyword id="6354427" type="General" weightage="20" keywordseo="apple" source="Orion">Apple</keyword> assembled iPhones worth more than Rs 1 lakh crore in India in 2023, according to industry data. Industry sources told IANS on Tuesday that out of Rs 1 lakh crore, Apple exported iPhones worth approximately Rs 65,000 crore to other countries. However, according to industry sources, the actual market value of the iPhones manufactured/assembled in India could be much higher, depending on taxes in other countries. The Economic Times was first to report about Apple's manufacturing data in the country. Apple's manufacturing in India is part of the goals set under the production-linked incentive (PLI) scheme. Riding on the local manufacturing growth, mobile phone exports from the country surpassed $9 billion (more than Rs 75,000 crore) from April to November in the current fiscal year, according to the India Cellular and Electronics Association (ICEA). Led by Apple, India is set to cross $15 billion (over Rs 1,24,000 crore) in mobile phone exports in the current fiscal year (FY24), posting a growth of 35 per cent over the last fiscal year. Apple's revenue in India hit nearly Rs 50,000 crore in FY23, with sales increasing 48 per cent to Rs 49,321 crore and net profit rising 76 per cent to Rs 2,229 crore -- fastest growth of net profit for Apple in India in the last five years. Driven by domestic manufacturing, Apple iPhones were set to garner around 7 per cent market share in the Android-dominated smartphone market in India in 2023. The country is now the second-biggest manufacturing hub for mobile phones due to heavy investment from original equipment manufacturers, original design manufacturers and companies dealing in components and parts. The mobile phone exports are anticipated to account for about 58 per cent of the overall electronics exports in FY24, compared to around 47 per cent in the previous fiscal year. Apple is aiming to manufacture more than 50 million iPhones in India per year, as it aims to shift some of the production out from China. The tech giant aims to achieve the target within the next two to three years, with additional tens of millions of units planned after that, according to reports. If Apple achieves this target, India would account for a quarter of global <keyword id="6354606" type="General" weightage="20" keywordseo="iphone" source="Orion">iPhone</keyword> production. China will still remain the largest iPhone producer, a Wall Street Journal report mentioned in December. From Apple to Foxconn, the companies are aiming to leverage domestic capabilities to achieve supply chain diversification and scale up production by manufacturing in the country.

Apple exported 'India-made' iPhones worth Rs 65,000 crore in 2023

China, which is still the key <keyword id="6354427" type="General" weightage="20" keywordseo="apple" source="Orion">Apple</keyword> supplier, may lose its tag as leading iPhone manufacturer as Apple looks at India and Vietnam to bolster its supply chain, the media reported on Saturday. Largest Apple supplier <keyword id="6354671" type="General" weightage="20" keywordseo="Foxconn" source="Orion">Foxconn</keyword> has "quietly finalised plans" to relocate some of its Apple iPad and MacBook production to Vietnam, reports The South China Morning Post. Apple has reportedly cut back on orders citing weakening demand in potential blow to its Chinese suppliers amid Covid disruptions. At the moment, China is way ahead on the <keyword id="16061828" type="General" weightage="20" keywordseo="Apple-product-manufacturing" source="Orion">Apple product manufacturing</keyword> global map. According to Bloomberg's analysis of Apple's global supply chain, 121 (17.7 per cent) of Apple's 2022 suppliers were domiciled in China, making the country the second largest global source of Apple's supply chain after the US. India is in eighth spot, with two companies (0.3 per cent) and 278 out of 12,248 global facilities (2.3 per cent). Vietnam was in 14th place with two companies (0.3 per cent) and 160 facilities (1.3 per cent). Apple is eyeing to ramp up manufacturing in India amid Covid-related supply chain issues in China. Apple is fast forwarding its manufacturing plans in India and Vietnam in the wake of unrest in China over zero-Covid policy which has severely disrupted its supply chain, leading to an acute shortage of new iPhone 14 Pro models last last year. The Wall Street Journal had reported that the company is "telling its suppliers to plan more actively for assembling Apple products elsewhere in Asia, particularly in India and Vietnam" in order to "reduce dependence on Taiwanese assemblers led by Foxconn". Apple aims to ship 40-45 per cent of iPhones from India compared to a single-digit percentage currently, according to Kuo. Every fourth iPhone will be made in India by 2025, according to JP Morgan. Buoyed by the ease-of-doing business and friendly local manufacturing policies, Apple's 'Make in India' iPhones will potentially account for close to 85 per cent of its total iPhone production for the country in 2022, according to industry experts. Apple first started manufacturing iPhones in India in 2017, with iPhone SE. The tech giant manufactures some of its most advanced iPhones in the country, including iPhone 11, iPhone 12 and iPhone 13 at the Foxconn facility, while iPhone SE and iPhone 12 are being assembled at the Wistron factory in the country. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/13th-gen-intel-core-i9-13900ks-brings-unprecedented-speed-to-desktop-users/articleshow/96967459.cms">13th Gen Intel Core i9-13900KS brings unprecedented speed to desktop users </a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/apps-for-marathon-runners-on-iphones-and-apple-watch/articleshow/96965438.cms">The best apps for marathon runners on iPhones and Apple Watch</a>

Apple eyes India, Vietnam to replace China as its key manufacturer

In a major fillip to <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword>'s dream to become a global manufacturing hub, <keyword id="6354427" type="General" weightage="100" keywordseo="apple" source="Orion">Apple</keyword> on Monday confirmed it has started manufacturing its top-selling iPhone 13 smartphone in India. Apple first started manufacturing <keyword id="57315" type="General" weightage="50" keywordseo="iphones" source="Orion">iPhones</keyword> in India in 2017, with iPhone SE. "We are excited to begin making iPhone 13 -- with its beautiful design, advanced camera systems for stunning photos and videos, and the incredible performance of the A15 Bionic chip -- right here in India for our local customers," Apple said in a statement shared with IANS. The tech giant manufactures some of its most advanced iPhones in the country, including iPhone 11, iPhone 12 and now iPhone 13 at the Foxconn facility while iPhone SE and iPhone 12 are being assembled at the <keyword id="1930805" type="General" weightage="50" keywordseo="wistron" source="Orion">Wistron</keyword> factory in the country. According to industry experts, the new Apple iPhone 13 series has benefitted from the strong consumer appetite and spend to upgrade to premium smartphones. In the first quarter this year, CyberMedia Research (CMR) estimates point to Apple iPhone shipments potentially growingA more than 20 per cent (on-year), with the iPhone 13 series contributing close to 17 per cent of the total iPhone shipments. "The Apple iPhone shipments will potentially touch the 7 million mark in CY2022, translating into a historic 5.5 per cent market share," Prabhu Ram, Head-Industry Intelligence Group (IIG), CMR, told IANS. iPhone 13 was available to customers in India simultaneously with the US, among other markets which was a first for the country. The device features an advanced 5G experience, brings super-fast performance and power efficiency with A15 Bionic, longer battery life, and a beautiful flat-edge design with incredible durability with the Ceramic Shield front cover, tougher than any smartphone glass. iPhone uses 100 per cent recycled rare earth elements in all magnets, 100 per cent recycled tin in the solder of the main logic board and, for the first time, in the solder of the battery management unit. Apple started its India journey more than 20 years ago. The tech giant launched its India online store in September 2020 and will soon open its own retail store in the country. "With growing domestic Apple iPhone production, aggressive retail forays, and marketing initiatives, we anticipate Apple's growth story in India to remain resilient despite potential headwinds," Ram told IANS. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/asus-rog-launches-zephyrus-m16-2022-edition-for-indian-gamers/articleshow/90726674.cms">ASUS ROG launches Zephyrus M16 2022 edition for Indian gamers</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/el-salvadors-bitcoin-city-ropes-in-new-startup-to-set-up-digital-infrastructure/articleshow/90728932.cms">El Salvador’s Bitcoin City ropes in new startup to set up digital infrastructure</a>

Tech giant Apple confirms manufacturing iPhone 13 in India

<keyword id="6354427" type="General" weightage="50" keywordseo="apple" source="Orion">Apple</keyword> will reportedly not manufacture its high-end model, <keyword id="6354606" type="General" weightage="100" keywordseo="iphone" source="Orion">iPhone</keyword> 14 <keyword id="9415114" type="General" weightage="50" keywordseo="pro-max" source="Orion">Pro Max</keyword>, from the recently launched iPhone 14 series in the country. Several reports emerged saying that the iPhone 14 Pro Max is being manufactured in <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>. However, according to close sources, the high-end model will not be manufactured in the country, reports GizmoChina. As per the reports, the tech giant is reportedly reducing its reliance on China for product manufacturing. "The new iPhone 14 lineup introduces ground-breaking new technologies and important safety capabilities. We're excited to be manufacturing iPhone 14 in India," the company said last month. Foxconn is assembling the new iPhone 14 at its Sriperumbudur facility near Chennai. At this pace, industry analysts predict that next year, Apple might manufacture iPhone 15 in India at the same time in China. The tech giant started manufacturing <keyword id="57315" type="General" weightage="50" keywordseo="iphones" source="Orion">iPhones</keyword> in India in 2017 with iPhone SE. Apple manufactures some of its most advanced iPhones in the country, including iPhone 11, iPhone 12 and iPhone 13, at the Foxconn facility, while iPhone SE and iPhone 12 are being assembled at the Wistron factory in the country. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/markets-open-higher-on-strong-corporate-earnings-despite-weak-global-cues/articleshow/95002711.cms">Markets open higher on strong corporate earnings despite weak global cues</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/motorola-could-launch-not-one-but-two-razr-foldable-phones-in-2023/articleshow/95008086.cms">Motorola could launch not one, but two Razr foldable phones in 2023</a>

Apple not manufacturing iPhone 14 Pro Max in India: Report

<ul><li>Apple's top manufacturer, Foxconn Technology Group, is shifting its manufacturing lines to India for mass production. </li><li>The chairman of Foxconn, <keyword id="166576" type="PERSON" weightage="20" keywordseo="Terry-Gou">Terry Gou</keyword>, stated that India has a “very important role” to play in the smartphone industry.</li><li>Increasing production in India could finally mean that Apple can source 30% of its materials locally, making the company eligible to open its 'Apple Stores' in the country.</li></ul>Apple's primary device manufacturer, Foxconn Technology Group, has plans to shift the mass production of iPhones to India this year according to Terry Gou, Foxconn Technology Group chairman. For the longest time, Foxconn's production of Apple devices has been concentrated in China indicate a shift in their strategy going forward. 
 
 <div type="ExtQuote" text="In the future we will play a very important role in India's smartphone industry. We have moved our production lines there." auname="Terry Gou, Chairman of Foxconn Technology, at an event in Taiwan"></div>





 And manufacturing iPhones in India would solve a problem that Apple has been struggling with for years — opening its exclusive 'Apple Stores' in the country. The issue has always been that Apple needs to source at least 30% of its material in India, a target it has continuously failed to meet. 
 
 <div type="ExtQuote" text="We'd like to put stores there (India). We would like some of the duties and so forth that are put on the products to go away. And we're working closely with the team there." auname="Tim Cook, Apple CEO, during the company’s earnings call in January"></div>





 Earlier this year, the company <a href="http://bring">announced</a> its plans to roll out Flagship Apple Premium Resellers (FAPR) in the four cities that have the largest demand for Apple products — New Delhi, Mumbai, Bengaluru and Chennai. While other brands, like Xiaomi and ASUS, jumped on the '<keyword id="6354869" type="PERSON" weightage="20" keywordseo="make-in-India">Make in India</keyword>' bandwagon, Apple was counting on the Indian government to offer concessions on manufacturing. And, so Apple had to stick to selling its devices through resellers, who in turn, have had to discount the premium phones in order to make sales. Crossing from East Asia to South Asia Apple has been <a href="https://www.businessinsider.in/apple-just-sounded-the-alarm-on-a-slowdown-in-china-staying-away-from-these-20-stocks-could-help-you-avoid-the-pain-goldman-sachs-says/articleshow/67371100.cms">struggling</a> in China as the country's GDP growth slows down and in December 2018, the manufacturing sector was seen contracting for the first time in 19 months. While the US-China trade war is partially to blame, <a href="https://www.businessinsider.in/apple-ceo-tim-cook-explains-why-iphones-dont-sell-in-india/articleshow/67752038.cms">competition</a> from local players like Huawei and the slowdown in upgrade cycles are also contributing factors. 
 
 <div type="ExtQuote" text="One of those factors, weak macro-conditions in some emerging markets, was significantly more severe than we originally foresaw, especially in Greater China. That challenge was compounded by quarterly iPhone upgrades that were lower than we anticipated." auname="Tim Cook, Apple CEO, during the company’s earnings call in January"></div>





 In simple terms, it's more expensive to manufacture in China and the demand for iPhones is slowing down. In India, on the other hand, the smartphone market is the <a href="https://www.counterpointresearch.com/xiaomi-leads-india-smartphone-market-reliance-jio-leads-feature-phones-overall-handset-market/">fastest</a> growing among major markets according to Counterpoint. But, for Apple, the landscape hasn't been much rosier in the South Asian Country. Its market share has been dipping since Xiaomi and OnePlus started to <a href="https://www.counterpointresearch.com/oneplus-surpasses-samsung-apple-lead-growing-indian-premium-segment-q2-2018/">aggressively</a> price their products to offer higher specs at lower prices. Nonetheless, India continues to be a critical market for India <a href="https://www.businessinsider.in/apple-ceo-tim-cook-explains-why-iphones-dont-sell-in-india/articleshow/67752038.cms">according</a> to experts. Sources had previously <a href="https://www.businessinsider.in/apples-top-manufacturer-foxconn-will-start-making-higher-end-iphones-in-india-moving-production-out-of-china-amidst-trade-war/articleshow/67275567.cms">reported</a> that the 'Made in India' iPhone X — Apple's high end device from its latest launch — would begin production in Foxconn's Chennai plant in southern India. See also: <a href="https://www.businessinsider.in/apples-top-manufacturer-foxconn-is-reportedly-cutting-50000-seasonal-jobs-earlier-than-usual-amid-slowing-iphone-demand/articleshow/67592504.cms">Apple's top manufacturer, Foxconn, is reportedly cutting 50,000 seasonal jobs earlier than usual amid slowing iPhone demand</a> <a href="https://www.businessinsider.in/apples-top-manufacturer-foxconn-will-start-making-higher-end-iphones-in-india-moving-production-out-of-china-amidst-trade-war/articleshow/67275567.cms">Apple's top manufacturer Foxconn will start making higher-end iPhones in India, moving production out of China amidst trade war</a> <a href="https://www.businessinsider.in/made-in-india-apple-iphones-wont-be-cheap-enough-for-indian-users/articleshow/67285223.cms">‘Made-in-India’ Apple iPhones may get cheaper but they probably won’t be cheap enough for Indian users</a>

Apple iPhone mass production is shifting from China to India — solving a key problem for the company

<ul><li>Apple may boost manufacturing capacity in India and Vietnam for upcoming iPhone production.</li><li>Reports suggest that China’s strict Covid measures led to huge losses for Apple.</li><li>Due to restrictions and supply chain challenges in China, the company aims to shift its production to other countries.</li></ul>Amid strict anti-Covid measures in China, tech giant Apple is reportedly considering increasing the production of iPads, iPhones, Macs and other products outside China. According to the WSJ <a href="https://www.wsj.com/articles/apple-looks-to-boost-production-outside-china-11653142077">report</a>, the iPhone maker has told some of its contract manufacturers that it wants to boost production outside the country, India and Vietnam could be the alternatives. It is being said that India and Vietnam could be the potential alternative to China as these countries already have a small proportion of manufacturing capacity for Apple. India is looked at as next after China as it has the second-highest population and lower labour cost. Based on the speculated development, reputed market analyst Ming-Chi Kuo said that the move to shift its manufacturing operations to India carries “<a href="https://twitter.com/mingchikuo/status/1528980554456387584">potential geopolitical risks</a>” as more than 90% of Apple products are manufactured in China. Whereas, the Chinese government has geopolitical issues with the Indian government. These issues can be some upfront challenges for Apple to set up a China-based manufacturing contractor in India. Before the pandemic, Apple was seeking to step out of production from China but the spread of Covid-19 stumbled the plans. Now with the recent developments, tech giant is pushing contractors that they should be looking to build new manufacturing units outside China. Recently, strict lockdown restrictions in Shanghai and other parts of China have bottlenecked the supply chain which may hinder Apple’s sales by <a href="https://www.wsj.com/articles/apple-has-a-little-time-on-its-side-11651247069?mod=article_inline">$8 billion</a> in the current quarter. Following clashes between India and China, ongoing diplomatic tensions, ban on Chinese apps and multiple raids over Chinese companies are some of the publicly known reasons that Apple’s China-based assemblers may not be able or want to shift production to India. However, Indian government has been pushing a production-linked incentive (PLI) scheme from which Apple can be benefitted. Currently, Apple is the second-largest exporter of handsets in India. India produced 3.1% of iPhones last year. Also, company has started the <a href="https://www.businessinsider.in/tech/mobile/news/apple-starts-iphone-13-trial-production-in-india-production-to-begin-in-february/articleshow/88408049.cms">production of iPhone 13 </a>in India with manufacturing partner Foxconn. In 2021, Apple has recorded the highest revenue in handsets touching nearly $2.09 billion in India while Samsung touched $2 billion. SEE ALSO: <a href="https://www.businessinsider.in/international/news/key-facts-about-americas-complex-love-[%E2%80%A6]cent-texas-mass-shooting-incidents/slidelist/91786016.cms">Key facts about Texas mass shooting incident and America’s complex love affair with guns</a> <a href="https://www.businessinsider.in/tech/news/meta-brings-updated-3d-avatars-across-facebook-messenger-and-instagram-heres-how-to-use-them/articleshow/91782176.cms">Meta brings updated 3D avatars across Facebook, Messenger and Instagram — here’s how to use them</a>

Apple could be looking to increase production in India but its geopolitical tension with China might hinder the process, says analyst

<keyword id="1523889" type="UNKNOWN" weightage="20" keywordseo="Sharad-Mehrotra">Sharad Mehrotra</keyword> was iPhone maker <a href="http://www.businessinsider.in/searchresult.cms?query=Apple&amp;sortorder=effectivedate">Apple</a>'s enterprise mobility head in India. He’s quit his ‘cushy job’, and will launch a smartphone company in the world's fastest-growing smartphone market on June 15. 
 
Mehrotra has been with <a href="http://www.businessinsider.in/searchresult.cms?query=Apple&amp;sortorder=effectivedate">Apple India</a> since October 2007, and only recently co-founded Hyve Mobility with Aditya Agarwal, who heads Euphoria and 4 Genius Minds. The company is targeting the Rs 15,000-20,000 segment with a flagship model. 
 
With close to 18 years of experience across the business development, marketing and retail from the likes of Apple and India's top telco <a href="http://www.businessinsider.in/searchresult.cms?query=Bharti+Airtel&amp;sortorder=effectivedate">Bharti Airtel</a>, Mehrotra is looking to bring back ‘basic hygiene’ into the Indian smartphone market. 
 
Why get into the smartphone business? 
It’s a crowded market, yes, but the smartphone penetration in India is still not great. It’s growing double digits quarter-on-quarter, so there’s a huge opportunity. There are gaps in the product portfolio unfortunately, service being one that we’d like to address. 
 
Most smartphone manufacturers are doing a lot of advertising, however not many are focusing on the convenience of the customer or what features or tech is really needed for customer delight. 
 
With the value proposition on offer, we’ll have our own niche. 
 
Is it feasible to offer extensive after-sales support to budget smartphones? 
It’s not a question of whether they want it, but whether they deserve it. Anybody paying the money deserves convenience and delight. That’s basic hygiene. 
 
Are you making money off hardware? 
We’re not in the business of losing money. 
 However, while several <keyword id="3400407" type="UNKNOWN" weightage="20" keywordseo="phone-manufacturing">phone manufacturing</keyword> companies and third-party players make money off <a href="http://www.businessinsider.in/searchresult.cms?query=bloatware&amp;sortorder=effectivedate">bloatware</a> and skinning, we won’t do that in the lieu of sacrificing delight. Ours is a stock <a href="http://www.businessinsider.in/searchresult.cms?query=Android&amp;sortorder=effectivedate">Android</a>. 
 
Manufacturing plans. 
Design and R&amp;D is in-house. We’ve patented the technologies. We have carefully chosen the brand of component. The assembly happens in China, but in a very controlled manner. There is no ‘thappa’ business here. 
 
Quality control Quality suffers because of lack of quality components or optimization. It’s unfortunate because <keyword id="6355645" type="COMPANY" weightage="20" keywordseo="android">Android</keyword> is an open market, people play around with it. We’re extremely sensitive about this. 
 
For instance, 13 MP + 5MP is standard for camera. However, there are people who put a 8 MP lens and zoom in through software so it looks like 13 MP. Also, the sensor makes a difference. We’re ensuring the best brand for the price.

This ex-Apple exec wants to bring
back ‘basic hygiene’ into India's smartphone ecosystem

<keyword id="6354427" type="CITY" weightage="100" keywordseo="Apple">Apple</keyword>, manufacturer of <keyword id="6354606" type="COMPANY" weightage="100" keywordseo="iPhone">iPhone</keyword> has deputed a team to conduct a meeting with inter-ministerial officials on January 25 to discuss setting up of a manufacturing unit in India, according to a news agency. 
 
The senior officials will be from departments of commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics and information technology (DeITY) will take part in the deliberations. 
 
In a communication to the government, the Cupertino-based technology major has asked for several tax and other incentives, including long-term duty exemptions, to enter the manufacturing sector in India. 
 
However, the sources said the technology major should set up the manufacturing unit in India without seeking additional support. 
 As many as 42 companies are making mobile phones in India, including Chinese firm <keyword id="6357456" type="CITY" weightage="20" keywordseo="Huawei">Huawei</keyword> and <keyword id="874458" type="COMPANY" weightage="20" keywordseo="Xiaomi">Xiaomi</keyword>, and no firm has approached the government for any additional incentives. 
 
Currently, the government provides support by way of benefits under the Modified Special Incentive Package Scheme (MSIPS) to boost electronic manufacturing. 
 
The scheme offers financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in special economic zones, among other benefits. 
 
Apple's products are manufactured in six countries, including Korea, Japan and the US. 
 Earlier, the finance ministry in May had rejected relaxing the 30 per cent domestic sourcing norms as sought by the iPhone and <keyword id="101239" type="CITY" weightage="20" keywordseo="iPad">iPad</keyword> maker as a pre-condition of bringing in FDI to set up single-brand retail stores in the country. 
 
The company had sought exemption on the ground that it makes state-of-the-art and cutting-edge technology products for which local sourcing is not possible. 
 
The government had also turned down the firm's proposal to import refurbished phones and sell them in India. 
 The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and <keyword id="6354785" type="COUNTRY" weightage="20" keywordseo="France">France</keyword>, among others. It has no wholly-owned store in India and sells its products through distributors such as <keyword id="72596" type="CITY" weightage="20" keywordseo="Redington">Redington</keyword> and <keyword id="325300" type="ORGANIZATION" weightage="20" keywordseo="Ingram-Micro">Ingram Micro</keyword>. 
 
The government has announced incentives to promote electronic manufacturing in India and reduce the import bill.

iPhone maker Apple to set up a manufacturing
unit in India?

<ul><li>Industry insiders report that Apple is likely to set up its first ‘<keyword id="189873" type="ORGANIZATION" weightage="20" keywordseo="Apple-Store">Apple Store</keyword>’ in the country’s financial capital, Mumbai. </li><li>The Apple Store is expected to match the level of some of the company's most prolific outlets around the world like the one along Champs-Elysees in Paris. </li><li>This would be the first step by Apple to re-establish itself in India but there’s still a long road ahead before it can become a dominant player. </li></ul>Apple has almost made its decision on where it’s going to set up shop in India. And, Mumbai seems to be the most likely candidate according to sources who spoke to <a href="https://www.bloomberg.com/news/articles/2019-05-08/apple-preps-push-in-india-with-short-list-for-first-retail-store">Bloomberg</a>. It isn’t going to be an ordinary store either. Sources say that it will match the grandeur of the Apple Store on Fifth Avenue in New York or the one along the Champs-Elysees in Paris. <div type="image" title="Apple-Champs-Elysees-opens-team-members-11152018_big.jpg.large" msid="69246689" hostid="261" caption="&amp;lt;p&amp;gt;Inside the Apple Store located in Champs Elysees, Paris&amp;lt;/p&amp;gt;"></div>

 Tim Cook, Apple’s CEO, emphasized on the importance of India during the company’s earnings report last week. Considering that the company is facing troubled times in China, India is Apple’s next best option to capture a larger market share. <div type="ExtQuote" text="India is a very important market in the long term. It’s a challenging market in the short term, but we’re learning a lot. We plan on going in there with sort of, all of our might." auname="Tim Cook, CEO of Apple, during the company’s earnings call"></div>

 But, Apple hasn’t had an easy go of it in India either. It faced many roadblocks until it <a href="https://www.businessinsider.in/apple-iphone-mass-production-is-shifting-from-china-to-india-solving-a-key-problem-for-the-company/articleshow/68891132.cms">announced plans to increase its manufacturing efforts</a> in the country. Apple’s troubles in India Apple is one of world’s most successful brands. Institutes use Apple as a case study to demonstrate how a brand’s consistency and emotional appeal can have a lasting impact. In spite of all this might, and Apple considering India as a big opportunity, it has never been able to get its marketing right in the country. Its many problems range from iPhones being too expensive for the average user and battery issues, that make them less than ideal for round-the-clock use. Adding to that, Apple <a href="https://www.businessinsider.in/still-unable-to-bring-apple-stores-to-india-apple-is-establishing-flagship-outlets-instead/articleshow/65485724.cms">couldn’t set up its iconic ‘Apple Store’</a> until it met the Indian government’s requirement of sourcing 30% of its material locally. It has been manufacturing older iPhone models in the country. But, this year, it announced its <a href="https://www.businessinsider.in/wistron-makes-apple-iphones-cheaper-in-india/articleshow/68319929.cms">plans to manufacture high-end devices</a> as well. The factory which produces iPhone 7 has already started operations. Apple’s manufacturing partner, Foxconn is setting up base in Bengaluru to mass produce iPhone X — a phone that retails for more than ₹60,000 apiece, even with the prices slashed. Price cuts To establish its base in India, Apple also ran heavy discounts on its cheapest variant of the latest series, the iPhone XR. Though, it should be noted that phone costs ₹59,900 even with a ₹17,000 concession. Apple’s success doesn’t only depend on re-establishing its brand in India, but also on how it will take on Chinese smartphone manufacturers who currently dominate the market. As of now, Apple doesn’t even figure into the top five phone brands. It’s going up against the likes of Xiaomi and Samsung, the top two brands in India during the last quarter according to <a href="https://www.counterpointresearch.com/india-smartphone-share/">Counterpoint</a>. See also: <a href="https://www.businessinsider.in/apple-iphone-mass-production-is-shifting-from-china-to-india-solving-a-key-problem-for-the-company/articleshow/68891132.cms">Apple iPhone mass production is shifting from China to India — solving a key problem for the company</a> <a href="https://www.businessinsider.in/wistron-makes-apple-iphones-cheaper-in-india/articleshow/68319929.cms">Can this former Acer company help Apple’s losing streak in India?</a> <a href="https://www.businessinsider.in/still-unable-to-bring-apple-stores-to-india-apple-is-establishing-flagship-outlets-instead/articleshow/65485724.cms">Still unable to bring Apple Stores to India, Apple is planning flagship outlets instead</a>

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