The Minister of Commerce and Industry Mr Piyush Goyal announced that tech-giant Apple has new plans for India. The company is planning to increase its iPhone production in India to 25% from the present 5-7%.
The minister further praised the move as "another success" story for the economy. However, there has been no official confirmation from Apple's side. Recently, Apple produced the latest model of the iPhone 14 series in India, close to its launch. This was a first as Apple was earlier only producing older models in India.
Manufacturing of iPhones started in India only in 2017. Apple has entrusted Foxconn, a Taiwanese company with the production of its phones. In India, they are being produced in Sriperumbudur which is located on the outskirts of Chennai.
Analysts from JP Morgan have said that Apple could bring 25% of its global iPhone production to India by 2025. This could come as a blessing to India's economy as Apple is the world's biggest technology company. Eventually, this would help establish India's image as a high-skill tech market.
Apple is exploring options to shift some of its manufacturing elsewhere from China. A majority of the iPhones are being produced in China. However, during the Covid outbreak production saw a lot of disruptions.
A CNBC report also stated that India is considering bringing a certain part of Apple's iPad production home from China.
Presently, Apple only has a small 5% market share in India's smartphone market. But at the same time, CEO Tim Cook has recognized it as a potential market.