The story of Apple iPhone in India is developing rapidly. Exports exceeded $1 billion in the five months since April, there has been a rapid turnaround in the production of the latest iPhone 14 models, new joint ventures (JVs) are being formed between owners domestic and international chip manufacturers, and retail companies. bring out clear interpretations.

A report by Bloomberg shows that currently, shipments of iPhones made in India, especially to Europe and the Middle East, will reach $2.5 billion in the 12 months to March 2023. This means that the value of iPhones and produced in the house will be. doubling from $1.3 billion by March 2022.

India is poised for rapid growth in the iPhone manufacturing market, but can it overtake China and become the Cupertino tech giant’s preferred partner?

The answer lies in the data: According to recent estimates from Bloomberg Intelligence, it will take about eight years to move 10% of Apple’s production capacity from China, where about 98% of the company’s iPhones are made.

Further, the difference between the number of iPhones manufactured in India and China is still huge. Last year, India produced nearly three million iPhones, while China produced a mammoth 230 million.

The reason why China is miles ahead of India at this time is that it has a good ecosystem of home appliance suppliers, modern and efficient transportation, telecommunications, and power generation, which Apple has try and test them.

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So on the face of it, Apple considering a reformation like this seems unlikely.

India is picking up the pace

A recent comment from Moody’s, which praised – albeit cautiously – the power of Apple’s Indian manufacturing, raised hopes and strengthened faith in India’s capabilities.

“Apple’s plan to manufacture iPhone 14 products in India is positive because it will provide opportunities for its factories that are more focused in China,” said Raj Joshi, senior vice president of Moody’s.

In its commentary, Moody’s wrote that Apple has produced iPhones in India since 2017, but the domestic production of iPhone 14 within weeks of their global launch shows the maturity of the company’s manufacturing capacity in India. which is expected to grow rapidly.

This maturity is also due to growth in India’s mobile phone manufacturing and chip manufacturing industry.

Recently, Vedanta announced that it will set up a manufacturing facility for iPhones and television sets in Maharashtra. The mining giant will hold a 60% stake in the joint venture while Taiwanese chip maker Foxconn will own the remaining 40%.

Also, the competition to manufacture iPhones is heating up, where the Tata Group has entered the competition. The group is in talks with Taiwan’s electronics giant Wistron to set up a JV.

The government, too, is trying hard to develop the Indian manufacturing industry which has the promise of growth. We recently reported that the Indian government is seeking a bigger share of the world’s pie as consumer demand for chips – considered the “new oil” – is on the rise.

China’s loss could be India’s gain

The relationship between the United States and China has entered a major roadblock, where the United States is trying to extend its position as the most powerful economic country in the world, and China is trying to bring it to its knees.

The war on semiconductors is an important part of this journey.

China has been breathing down the neck of Taiwan, which is home to the world’s largest semiconductor manufacturers and is relied on by major customers such as Samsung.

China considers Taiwan as an important part of the country, and has repeatedly stated that any attempt by the United States to prevent it, it will receive a full response.

In retaliation, the Joe-Biden administration passed the CHIPS and SCIENCE Act of 2022, and approved a $52.7 billion budget for manufacturing and research and a 25% investment tax credit for plants The piece is estimated at $24 billion. This credit applies to projects that begin construction after January 1, 2023.

The US government has also ordered chip makers Nvidia Corp and AMD to stop exporting two major spy computers to China for national security purposes.

As relations between the two countries continue to sour, and India is warming to the US, the country’s ambitions to become an iPhone maker and a leader in consumer electronics may gain momentum over time.

But, according to data, India has a long way to go before it can compete with the Chinese iPhone manufacturers.

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