Currently, apple is speeding up efforts to move some of its iPhone production lines out of China. According to techcrunch, Ravi Shankar Prasad, India’s Communications Minister, announced on July 24 local time that the iPhone 11 has been put into production at Hon Hai’s Chennai plant in India, one of the first high-end phones Apple has produced in the country.
prior to that, due to the factors of product technology and technology, Apple’s Indian factory mainly produced two types of mobile phones, namely the iPhone XR produced by Hon Hai factory and the iPhone 7 produced by Weichuang factory (a subsidiary of Acer computer in Taiwan). The profits of these products are relatively low and the OEM requirements are relatively low.
the economic times of India said that by selling locally made equipment in India, Apple could avoid India’s 22% import tax on foreign made electronic products. It is not clear whether the equipment will be manufactured only in India or in the broader global market.
techcrunch said Apple plans to expand production in India, which in turn will reduce its dependence on China, where most iPhones are currently made.
and Apple’s action also represents that Apple will continue to diversify the production capacity of its iPhone base in China, making a key step from “made in China” to “made in India”. This is also the first time that an Indian factory produces the flagship model of iPhone.
Apple has been making cheaper iPhones in India since 2017, and for some time Apple has been considering moving production of its more premium models to India.
and the production of the contemporary flagship iPhone 11 in India for the first time in 2020 represents the great progress of India’s commitment to the development of mobile phone manufacturing industry.
according to the latest research report data released by counterpoint on January 24, India’s smartphone shipment will reach 158 million in 2019, an increase of 7% over the same period last year. This data shows that in 2019, India’s smartphone shipment surpassed that of the United States for the first time, becoming the world’s second largest smartphone market after China.
in terms of brand sales, the top five brands in India’s smartphone market in 2019 are Xiaomi Samsung vivo realmeoppo, accounting for 84% of the total Indian market, up 11% year-on-year.
with the further improvement of India’s economy, there is still a huge room for growth in the sales of smart phones in India, because India has a population of nearly 1.4 billion. To compete for the new potential stock, Xiaomi’s second plant in India has begun production, which produces an average of one smartphone per second.
although apple is among the best in India’s high-end smartphone market, it only accounts for 1% of India’s total smartphone market. Moreover, as of 2019, the penetration rate of 4G users in India is only 55%, and still a small half of Indians are still buying and using functional phones.
However, according to the analysis of relevant industry personages, nowadays, India’s resistance to external products is very fierce. Apple’s production of new flagship mobile phone products in India may also be to reduce the risks that its products may encounter.
it is worth mentioning that after the new iPhone is produced, it still needs to be shipped to the United States for system service authorization. Although the cost of OEM is reduced, the cost that users need to bear will not decline.
and, according to Nikkei news, in March 2020, Vietnam’s standard version of airpods began mass production, accounting for 30% of the production of airpods.
not only that, but with the impact of the epidemic, Japan began to plan to move its manufacturing industry out of China. According to reports, Japan’s Ministry of economy, industry and industry recently released the first batch of 87 enterprises that can receive government subsidies, so that their production lines can be withdrawn from China and relocated to Japan or Southeast Asian countries. It is reported that the 87 Japanese enterprises have received a total of 70 billion yen in subsidies.