Apple has begun assembling iPhone 14 models in India, it said on Monday, domestically producing the current lineup for the first time in a calendar year in the world’s second-largest smartphone market, according to analysts. predicts that there will be a big change in the American industry in the future.
The company’s global partner Foxconn manufactures the device in its Sriperumudur facility near Chennai. Domestically produced iPhones will go on sale in the country later this year. “We are very excited to manufacture iPhone 14 in India,” an Apple spokesperson told TechCrunch in a statement.
Apple started assembling smartphones domestically in India in 2017, but until this year, the iPhone maker used its manufacturing plant in India to assemble older handsets. Apple launched the iPhone 14 model earlier this month.
Analysts estimate that Apple will turn India into a global iPhone manufacturing center by 2025, as it slowly cuts its reliance on China, where it has manufactured most of its devices for more than a decade. In a report released earlier this month, analysts JP Morgan said Apple will move 5% of global iPhone 14 production to India by the end of 2022 and expand its manufacturing capacity in the country to produce 25% of all iPhones by 2025.
India has attracted investment from Apple’s manufacturing partners Foxconn and Wistron in recent years through generous subsidies as New Delhi moves to turn the country into an industrial hub. The presence of major foreign suppliers, along with “abundant labor resources and high labor costs,” makes India a desirable destination, said analyst JP Morgan.
“India’s iPhone manufacturing industry has historically offered only legacy products. Interestingly, Apple has requested EMS vendors to manufacture iPhone 14/14 Plus models in India in 4Q22, within two to three months of starting production in Mainland China. The report added that the narrower gap indicates the growing importance of Indian production and the potential for a larger share of the iPhone for the Indian industry in the future.
“We believe Apple is only producing the iPhone 14/14 Plus models in India now due to the improved camera system of the iPhone Pro series (made by EMS vendors) and the domestic market demand for the iPhone 14 series (reserved tax). We expect volume to start off lower in 4Q22 (~1M units per month, or 5% of total iPhone volume).”
As Apple expands its domestic manufacturing capacity in India, many will be hoping that it will make smartphones more affordable in the country. The base iPhone 14 model, which costs $799 in the United States, costs 79,900 Indian rupees ($980). Whereas the iPhone Pro Max model costs $1,717 in India, compared to $1,099 per liter in the United States.
Although Apple ordered a businessman in India, the iPhone maker has expanded its holdings in the country in the last five years. He opened an online Apple store in the country two years ago and has publicly stated that he is working to launch the first physical store in the country.
Apple’s rival Samsung has already declared India as the world’s largest manufacturing center and has established one of the largest factories in the country. The Chinese smartphone manufacturer Xiaomi, which is currently the market leader, as well as its rivals Oppo, Vivo and OnePlus are also assembling many of their phones in the country.
Google is also planning to ship some Pixel smartphones to India, The Information recently reported. The company, which has skipped shipping in India for two generations, said last week that it will launch the upcoming Pixel 7 model in India.