It seems that Apple decided to do the same saying that it does not put all its eggs in one basket, which is why it is considering having more than one supplier and instead of the entire manufacturing and production process in China, there will be another plant in the second largest market in the world.

india iphone


What's the story

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According to sources familiar with the matter, Apple is working to diversify its production base outside China, so the two largest suppliers of Apple, Foxconn and Westerun, will transfer 20% of iPhone production from China to India over the next five years.

This step comes from Apple in order to reduce its increasing dependence on China in the manufacture of the iPhone, as the American company is trying to have more than one presence to produce large quantities of the iPhone without any delay or delay in the next production process. Read an article (The genius of Apple and the phenomenon of the success of the iPhone 11To find out why India in particular.

It is expected that the Apple factory in India will manufacture iPhone devices with a value of up to 40 billion dollars, 1.5 billion dollars will be sold in the Indian markets, and the rest of the other iPhones (valued at 38.5 billion dollars) will be exported until they are sold in other markets. External.


Apple and the Indian market

iPhone 12 Pro

The Indian market is the second largest in the world after the Chinese market, and Apple has a small share in the Indian market at the present time, and some iPhone models are currently manufactured in India, such as the iPhone XR, while the production of the iPhone 7 and iPhone has been stopped. IPhone 6s and iPhone SE there.

During the recent period, Apple has succeeded in achieving some success in the Indian market, and according to a report issued by the market research firm IDC, Apple was able to acquire a 62.7% share of the smart phone market in India during its last quarter.


Why the Indian market

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Not only is it the second largest market in the world after China, but there are some reasons that make the Indian market a suitable place for Apple and include the production-related incentives program provided by the government and provides many advantages that Apple can benefit from during the coming period.

Some reports predict that smart phone exports in India will surpass the number of 100 billion units during the year 2025 and the decision to transfer 20% of Apple's production will greatly enhance the growth of the smart phone market, and the manufacture of the iPhone in India will reduce its price there and thus will be able to compete with phones. The other smartphones, where the price is the main factor that determines the sales of phones in India, which is why companies such as Xiaomi and Redmi have a great reputation there.

We cannot ignore the point of the Corona virus outbreak and the problems it caused in China's supply chains, which is why the need for diversification was a necessity from Apple.

Finally, the economic war between America and China could make Apple a victim of the decisions that will be launched by the two countries. Therefore, moving some production units away from China is a wise decision for the American company.

Do you think that Apple's plan to transfer a fifth of its iPhone production to India is a good thing? Share with us what you see in the comments.

Source:

economictimes

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