Last year, reports surfaced about Apple starting an iPhone manufacturing plant in Pune. Now, there are rumors that Apple may soon announce the launch of its first ever manufacturing unit in Ahmedabad or Bengaluru.
Apple manufacturing iPhones in India is a win-win situation for the Government and the company. Apple is one of the most valuable companies in the world. Every engineer desires to work for Apple.
Apple may invest up to 10 Bn US dollars in one or two production centers of contract manufacturers Wistron or Foxconn. If this happens, 1000s of people will be employed by one of the top US companies.
Foxconn is setting up its first plant in Navi Mumbai. Indian Express has reported that the plant will begin its operations from August 2017.
Wistron has sought permission by the Government and is likely to be given the green signal. The iPhones will be made in India once the production units of Wistron or Foxconn becomes functional.
Will iPhones get cheaper?
Apple assembles iPhones and many other products in China. According to so-called experts, as the iPhone is assembled locally, the mobile phones should be incredibly cheap.
I opened the official Apple’s product page on one of the largest shopping portals in China – the TMall.
Here’s what I found.
The iPhone SE price on TMall is 3788 Yuan which rounds to Rs 38000. In India, the same mobile phone carries a price tag of 39999 Rupees.
Similarly, the Price of iPhone 7 in China is 6988 Yuan i.e. 69000 Rs. The mobile costs in the same range in India. You can buy the 128GB version of the iPhone 7 for 57000 Rs or $834 on the Amazon US portal.
Why is iPhone cheaper in the US as compared to China, India, and other countries?
The parts of the iPhone are manufactured in various parts of the world. According to Macworld, a blog which has been covering Apple news since 10 to 15 years, iPhone’s Corning glass, baseband processor, semiconductors, touchscreen controller, and many more components are manufactured in the US. A bulk of other vital components of the iPhone is built in South Korea and Japan.
iPhones will be available for cheap only in the United States unless it moves the component manufacturing units to China or India. This is unlikely to happen because Donald Trump met Tim Cook to discuss the possibility of bringing the assembling unit to the US. Along with India, Apple may set up assembling plant in the United States.
Why does Apple want to set up its plant in India?
In you remember, the Indian Government had launched the make in India initiative wherein companies were invited to invest in India.
Prime Minister met leaders of various technology giants and offered them full support if they set up their manufacturing units, R and D centers, offices in India.
Frankly speaking, Apple has ignored Indian markets since it was first incorporated. India is the fastest growing phone markets in the world and Apple, like any other MNC, wants to use the available opportunity.
Apple manufacturing iPhons in India is big news for the Government and fans. Are you excited by the news?