Surat Investment：Apple increases investment in India, and plans to produce a quarter of the iPhone in India ｜ Titanium Media Focus

On December 8th, there is market news that the goal of Apple suppliers is to produce more than 50 million iPhones in India each year in the next two to three years, and then plan to produce tens of millions of additional units.If these plans are realized, Apple's iPhone production capacity in India will account for a quarter or more of the global iPhone output.

As early as March of this year, CEO Cook, CEO of Apple, held talks with Indian Prime Minister Modi in New Delhi.

Cook said in the tweet after the meeting that Apple is committed to growing and investing nationwide in India and showing photos of shaking hands with Modi.Modi said that they talked about "the change promoted by science and technology in India."One day before the two parties met, Cook also attended the opening ceremony of Apple's first Indian retail store in Mumbai.The second Apple retail store in the capital New Delhi also opened.

According to informed Indian officials, Apple's main manufacturer Foxconn Technology Group plans to establish a new factory in Cannatakbon, southern India, producing up to 20 million iPhones each year, and is expected to hire 50,000 people.In addition to the iPhone, Foxconn also hopes to produce iPad and other devices in India.

At the same time, Foxconn is also planning to produce another large factory that produces iPhone, which is similar to the factory of Kanatakbon, but the plan is still in the early stage.India's Tata Group hopes to build a factory in Holusul, Tamil Nadang, south.According to reports, the factory may have about 20 installations and hire 50,000 workers within two years, and the goal is to put it in operation within 12 to 18 months.

The comprehensive calculation of these capacity means that Apple's Indian factories will produce at least 50 million to 60 million iPhone per year in two years.

Morgan Chase analyst also said before that by 2025, one of the four iPhone mobile phones will be produced in India.Morgan Chase believes that as of the end of 2022, Apple will produce 5%iPhone 14 to India to complete.India is the world's second largest smartphone market after India.

As of 2025, the proportion of Apple products produced overseas in India will increase to 25%Surat Investment. These products include Mac, iPad, Apple Watch, and AirPods.Apple products currently produced outside India account for only 5%.

Earlier people who worked in India had analyzed titanium media that "manufacturing in India" belonged to India's national strategy, mainly divided into two strategies to implement.New Delhi Stock Exchange

One is to manufacture plans in stages.In the early days of the mobile phone industry, the Indian government attracted Indian mobile phone brands such as Xiaomi, OPPO, Vivo and other Indian mobile phone brands through various policies.When the brand enters, India will gradually increase the tariff ratio of mobile phone components, so that foreign mobile phone supply chains will be gradually migrated to India.After several years of development, India has a complete mobile phone supply chain.

The other is the industry production incentive plan.India currently has issued related economic incentive plans to more than a dozen industries including semiconductor, new energy vehicles, solar photovoltaic modules, and white appliances.For example, in response to the semiconductor industry chain, the Indian government approved by the Indian government on December 15, 2021, a incentive plan worth about $ 10 billion, attracts large global semiconductor manufacturers to use India as a production base.

Earlier in 2019, the Indian government amended the National Electronics Policy, which aims to promote the development and manufacturing industry development of Indian electronic system, encourage and promote core component development capabilities, and promote India to become the global center of the industry.This may also be the reason why India teamed up with Apple. The supply chain of the low -end mobile phones has formed a certain degree of maturity. India needs to accumulate the supply chain experience of high -end products like Apple.Ahmedabad Stock

The Modi government of India proposed that in 2025, the output value of electronic system design and manufacturing value chain (Turnover) reached US $ 400 billion. By further increasing the added value of electronic product manufacturing, India became the global leader of the electronic manufacturing service industry.

However, Apple's large -scale landing in India's capacity is not a simple matter.Market analysis believes that India will be the largest producer of iPhone for a long time.

At present, although the hourly salary of workers in India is lower than India, the supply chain supporting facilities are still in the initial stage, which will make other costs such as the transportation of components at a high level.At the same time, local unions will also have conflicts with enterprise production.In May this year, the 12 -hour work system of Foxconn India was opposed by local workers and was forced to cancel.

According to the official list of Apple's official supplier, nearly half of Apple's 190 suppliers are Indian companies, of which nearly 160 companies (India and Foreign) produce components in India.Saddand Du Mei, a senior researcher at the American Institute of Enterprise (said, India still faces several challenges in becoming an international manufacturing center, including government reform measures that have not yet "obviously" make it a more attractive investment in foreign businessmen.Destination (Author | Editor Rao Xiangyu | Zhong Yi)