'Made in India' iPhone 11 Goes into Production in Chennai - Rapid Repair
In what could be a huge breakthrough for the Make in India campaign, Apple has decided to assemble the iPhone 11 Series at its plant in Chennai. It is for the first time that the Cupertino-based company will manufacture the latest iPhone models in India.
So, what made Apple look towards India as the major production hub? Though the tech giant has been keeping a close tab on the Indian smartphone industry for quite some time, the recent trade war between the US and China has turned out to be the lynchpin.
The latest move makes it crystal clear that Apple wants to reduce its dependence on China for production. China was already struggling to fight out the allegation of espionage when the deadly COVID-19 originated within its territory. Many countries blamed China for intentionally spreading the pandemic, and also keeping the world in the dark about the disease.
Being the second-largest smartphone industry, India promises to be a great destination for Apple. Be it the mass market or comparatively cheap labour, the country has got most bases covered to be the next manufacturing hub for the Cupertino-based company.
Finally, the “i” in iPhone stands for India as Made in India iPhones are going to get more spotlight globally.
As is usually the case, Apple’s trusted iPhone manufacturer Foxconn is at the helm of affairs. The Taiwanese multinational electronics contract manufacturer is assembling the iPhone 11 and iPhone XR, which are the more advanced iPhone models, in Chennai.
Wistron, the other Taiwanese electronics contract manufacturer, is assembling iPhone 7 and iPhone SE 2020 in Bengaluru. Details about the production volumes and exports for the iPhone 11 are not clear yet.
According to Counterpoint Research, 29% of Apple’s smartphone shipments in the first quarter of 2020 in India came from domestic manufacturing facilities. The research company further added that the tech giant exported around 400,000 Made in India phones to European countries in the first quarter of 2020.
Making iPhones in India also saves Apple import duties of 20%. The company can take advantage of this pivotal saving to cut down the price of its smartphones in the country.
One of the major reasons why rivals like Samsung, OnePlus, Xiaomi, Oppo and Vivo have been able to attract Indian buyers is the varied option coupled with the eye-grabbing price point. The Cupertino-based company should take note of the business strategy employed by its rivals to offer a similar proposition.
Despite being a noted smartphone maker in the world with the second-largest share in the global smartphone industry, Apple hasn’t been able to rule India. Not that Indian customers don’t admire the iPhone and Apple ecosystem, but it’s the comparatively high-price tag that puts them off.
Faced with a cut-throat competition where rivals offer high-end specs at killer price points to undercut flagship smartphones, Apple must find a way to attract price-conscious Indian buyers. The aggressive pricing of iPhone 11 and the launch of an entry-level iPhone SE 2020 at a relatively low price at $399 (Rs 42,500) suggests that the tech giant has finally discovered a trick to decode Indian smartphone industry.
Only time will tell whether or not Apple cansucceed in India. However, even the biggest detractor would have to agree to the fact that the Cupertino-based company had never been at a better position to make the most of Indian smartphone industry.
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