Apple has started manufacturing the iPhone 11 in India. According to a report in The Economist Times, the iPhone 11 will be manufactured by Foxconn in Chennai. Foxconn is Apple’s top-3 contract manufacturing company.
The company also makes the iPhone XR at the plant. According to the report, the company is planning to gradually increase its production. The company is building the iPhone 11 in India to reduce its dependence on China in the future.
Apple changed its strategy for a number of reasons
Apple is producing the iPhone 11 in India. It is a success for India. According to a report in the Wall Street Journal, one of the company’s plants in Silicon Valley is not keen to make new and expensive iPhones locally.
Factors including lack of proper supply chain and skilled labor to produce high end, organic light-emitting diode models have been attributed to this. So Apple has changed its strategy.
Production of the iPhone 11 in India is linked to the government’s PLI (Production Linked Incentive) scheme, which encourages companies to manufacture smartphones in the country.
The government is urging smartphone makers to bring in supply chain machinery so that indigenous marketing is not limited to assembling.
India will benefit from growing tensions in Sino-US
American companies are showing interest in India, also due to growing tensions between China and the United States. China is currently surrounded by unrest. So Apple is manufacturing it outside of China. Pegatron, the world’s largest iPhone maker, will also start manufacturing in India.
Apple will save 22% in import tax
Manufacturing the iPhone 11 in India will save the company 22% of import tax. It is unknown at this time what he will do after leaving the post. The company had hiked the price of some iPhones in India after the government changed the import tax.
The company then hiked prices even after GST was increased. Currently, the 64GB variant of the iPhone 11 is priced at Rs 68,300, the 128GB variant is priced at Rs 73,600 and the 256GB variant is priced at Rs 84,100.
YoY increased iPhone sales by 78% from January to March this year
According to a report by tech research firm Counterpoint, Apple has increased YoY’s iPhone sales by 78% YoY from January to March 2020. The reason is the iPhone 11.
The company may also produce another model in the future
According to media reports, the company may also manufacture the recently launched iPhone SE (2020) in India. The company also manufactured the original iPhone SE in India.