The Indian government’s “Made in India” initiative saw a huge boost earlier today as Apple announced that iPhone 11 handsets will be manufactured in India. The flagship iPhone 11 will make the switch from China to Foxconn’s Chennai plant for assembly. Indian Minister for Railways and Commerce & Industry, Piush Gopal was delighted to make the big announcement said “Significant boost to Made in India! Apple has started manufacturing iPhone 11₹ 63,900 in India, bringing a top-of-the-line model for the first time in the country”. Communications, Electronics & Information Technology Minister of India, Ravi Shankar Prasad tweeted about it earlier on Friday.
- Apple iPhone 11 assembly shifted from China to Chennai India
- iPhone XR Indian manufacturers, Foxconn will manufacture iPhone 11 units in their plant in Chennai
- Massive boost to President Modi’s “Made in India” initiative
- Apple will be free from the 20% import tax levied on mobile phones made outside of India
- President Donald Trump’s trade war a big threat to Apple pricing
Apple began this shift back in May 2017 with the iPhone SE’s production at Wistron In Bengaluru. Last year Apple also decided to go ahead with iPhone XR manufacturing in India at Foxconn. By this decision, Apple has made it clear that they will gradually shift iPhone assembly from China to other parts of the world.
There are almost 500 million smartphone users in India. As a result, the smartphone arena is very competitive price-wise. Several big names in the smartphone arena such as Xiaomi, Vivo, and Samsung have already invested in resources to cater to the growing Indian market. This bold move by Apple by apple to shift iPhone 11 assembly from China to Chennai in India was done with the intent of putting out a competitive price within the Indian market. As a result of this bold move, Apple will have the advantage of omitting the 20% import tax levied on mobile phones made outside of India.
Why is Apple moving away from China?
One of the main issues concerning apple is “PRICING”. CEO Tim Cook acknowledged this fact in 2016 when he said: “I recognize the prices are high, We want to do things that lower that over time to the degree that we can, so we’re looking into a number of things.”
President Trump’s trade war doesn’t help Apple at all with respect to their issue of pricing. President announced in November 2019 that he is planning on imposing an additional 10% tax on iPhone coming out of China. The only supporters backing Trump’s statement are no other than Apple’s competitors.
Apple enthusiasts will not see an immediate change in prices even though assembly in India has already begun. But in the future for sure we will be able to see much better competitive price points placed on the current high priced Apple products.