By India Blooms News Service Jan 18, 2023
Beijing/New Delhi: India is expected to assemble 50 percent of all the iPhones manufactured by 2027, a big leap from its current share of less than 5 percent, to be at par with the scale of production in mainland China, according to media reports.
Citing an analysis published in tech-focused Taiwanese daily newspaper DigiTimes, South China Morning Post reported that supply chain migrations to India will be happen at a faster rate as companies feel the need to diversify risks amid uncertainties posed by Covid control measures.
India is already predicted to account for up to 25 percent of total iPhone production by the end of 2023, and as much as 40 percent by 2025, the report said.
According to the analysis, India and Vietnam are going to be the biggest beneficiaries of the trade war between the United States and Beijing with China at risk to lose dominant position as the manufacturing hub of Apples devices.
China accounted for nearly 85 percent of the iPhones produced globally.
This comes as Taiwan-based Foxconn Technology Group, formally known as Hon Hai Precision Industry, push to boost capacity in India.
Last December, it injected a US$500 million into its Indian subsidiary, Foxconn Hon Hai Technology India Mega Development.
Further, Smartphone brands other than Apple and Samsung are also expected to see their combined manufacturing capacity in China decrease up to 50 per cent by 2027, down from around 70 percent in 2023, according to the DigiTimes report.
Indias share in production is likely to grow up to 35 percent in the same period, the report said.
According to Economic Times, Indias vast workforce, Modis support and a thriving local market make it a prime candidate to take on more electronics manufacturing.
Foxconn, which is Apples largest supplier, started building facilities in India more than five years ago, anticipating the need to extend its geographic range in future, the ET report said.
Further, Foxconn bagged Rs 3.6 billion of benefits in the first year of the Centres production-linked incentives (PLI) scheme aimed at making India the worlds production hub.
Apples three contract manufacturers - Foxconn, Pegatron and Wistron are expected to ramp up production and subsequently exports, driven by the governments Rs 41,000-crore PLI scheme.