Tuesday, November 5, 2024

From Cupertino to Calcutta: Apple follows Google’s India lead

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You probably already know that Google has been preparing to start making Pixel devices in India. Guess who else is coming to the party: Apple, probably!

Although Google’s Pixel production in India hasn’t begun, it is progressing. A recent report states that Google is preparing for trial production, with “lower-tier” Pixels being made there. Full production is expected to start in September, after the August 13 Pixel 9 line phone announcement. Most of the phones produced in India will be exported to the EU and US.

Now, Apple is reportedly exploring the expansion of iPad and AirPod charging case manufacturing in India, following its rapidly growing iPhone production there.

As you know, about 1 in 7 iPhones now come out of India.

Apple is reducing its reliance on Chinese manufacturing due to rising geopolitical tensions, though China remains its primary manufacturing hub and largest market for iPhones.

This manufacturing shift to India is a win for the local administration, which has offered financial incentives to attract foreign companies like Apple. This initiative has reportedly created 150,000 direct jobs at Apple’s supplier facilities in India.

In the fiscal year ending March 2024, Foxconn and Pegatron assembled nearly 67% and 17% of iPhones produced in India, respectively. The remaining iPhones were manufactured at Wistron Corp.’s Karnataka facility, now owned by Tata Group, which plans to establish one of the largest iPhone assembly plants in the country. The financial figures refer to the estimated factory value, not retail prices. Apple has not commented on these details.

Apple CEO Tim Cook has managed relations with Chinese officials while diversifying geographically, visiting China to meet with the commerce minister and open a new store in Shanghai.

In India, Apple currently manufactures iPhone models from the iPhone 12 to iPhone 15, excluding the Pro and Pro Max models. Most of these devices are exported, with Apple holding about a 6% market share in India, competing with more affordable Chinese smartphones.

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