Mumbai Wealth Management：Apple continues to increase India, India may account for a quarter of the global iPhone output

On January 4th, an analyst at the investment bank Piper Sandler lowered the rating of Apple, which is the second time the investment bank has lowered the rating of Apple for the second week.Or affected by rating, Apple's stock price fell 1.27%to close at $ 181.91/share, and the stock price hit a new low in nearly two months.According to the latest statistics of the media, after entering 2024, Apple's market value has fallen nearly $ 170 billion.

However, not long ago, Apple's plan was to produce more than 50 million iPhone in India in the next 2-3 years, and then planned to produce tens of millions of units.If the plan is realized, India will account for a quarter of the global iPhone output and occupy more shares at the end of this century.

Picture source: Sogou WeChat

Apple is rising rapidly in the Indian market. Data show that India once surpassed France and Germany last year and became the fifth largest market for Apple's iPhone. It contributed nearly 4%of the total iPhone sales, an increase of 50%year -on -year.Today Apple has become India's largest mobile phone exporter.

Apple has always tried to get rid of the dependence of India's manufacturing, and India has always attracted market attention as a production base for India.

Tata Group becomes the first

Indian local enterprises entering the fruit chain

India's long -term economic structure is mainly agricultural and service industries, and the industry is relatively backward, especially the electronic manufacturing industryMumbai Wealth Management. It has long been dependent on imports and lacks independent innovation and competitiveness.In order to change this situation, Modi proposed the "Indian manufacturing 1.0" plan at the beginning of 2014.In 2019, Modi proposed the "Indian Manufacturing 2.0" plan after taking office for the second time to serve as Prime Minister.

In the landing of a series of policies and measures, India's electronic manufacturing industry has shown a rapid development momentum, attracting many internationally renowned enterprises and brands, such as Apple, Samsung, Xiaomi, Huawei, Lenovo, Dell, Sony, etc.Yue India became the world's second largest smartphone production country, second only to India, accounting for 16%of global smartphone output.

Picture source: Sogou WeChat

Many large multinational companies are considering promoting India's position in its supply chain, especially Apple's most controversial.Weixin Zitong announced last year that his iPhone assembly department in India was acquired wholly.The other party obtained 100%equity of the Local Weicuang Zitong Manufacturing Company and paid $ 125 million for production line payment.

Weixin Catochia was manufactured in India in 2006Guoabong Investment. During this period, we continued to buy land to build factories. It is reported that Weisuke Tong's factory in Bangalore, India covers an area of ​​44 acres. It has 8 production lines and tens of thousands of workers. It is the iPhone.12 and iPhone 14 are one of the main assembly places.Nagpur Investment

Suddenly, those who killed them were neither Foxconn, and Haruo Sung, an old friend who had a deep intersection with Apple, and was not a professional foundry, but a consortium with local capital and advantages of India -Tata Group.With this acquisition, Tata became the first Indian company to enter the fruit chain.

Picture source: Sohu.com

Tatta Group not only has large IT enterprise Tata Consulting Service Company (TCS) and Tata Automobile, but also conducts businesses such as home appliances.In "2022 Jiaxing Economic Top 500 World Top 500", it ranked 65th with a market value of RMB 108 billion, ranking second in 20 Indian companies on the list.

In addition, the Tata Group also acquired the Indian legal person of Wei Chuangzi, and Tata continued to emphasize "Indian domestic" to expand the sales of Apple products in India.The Minister of Electronics and Information Technology Rajov Chandlaseca also posted on Twitter that "Tata will begin to create iPhone at home and abroad in India."

It is reported that Tata Electronics, Foxconn and Harmony are expected to start the iPhone 17 trial production process as early as the second half of 2024. If it is implemented, this also marks that Apple will first develop and manufacture new iPhones overseas in India.Kolkata Stocks

Apple's proportion of continuous blessing in India

Mobile phone manufacturing is undoubtedly one of the fastest -growing departments in India's manufacturing industry in recent years.In 2014, there were only two mobile phone production plants across India. As of 2023, India's export volume only exceeded $ 11 billion.The rise of Apple in India is full -range from retail to manufacturing.

Apple opened a physical store for the first time in the Indian capital Delhi last year and the Grand City Mumbai for the first time. Tim Cook, CEO of Apple CEO on the day of opening, was rare.The Apple Payment Service Apple Pay is launched in the Indian market.

Picture source: Netease

Compared to Samsung's manufacturing in 7 countries including Argentina, Vietnam, India, almost all hardware products were manufactured in India before Apple.However, due to various complicated foreign reasons in recent years, Apple has also accelerated the diversified layout, and India has become its main position.

Since 2017, Apple has been producing iPhone in India, but it is usually a model with older versions.However, the transition has begun to start in India's iPhone 14 flagship models, which also marks India's power to have the latest iPhone product power that assembles the latest model.

From 2021 to 2023, in just a few years, Apple's iPhone's production in India has increased rapidly from 1%by nearly 7%, and its output value in India has also exceeded 7 billion US dollars, and it is still growing at high speed.Cook also said that Apple not only regarded India as a large market, but also regarded India as a global manufacturing and innovation center.To achieve this goal, Apple needs more labor, larger and more powerful foundries, and the competition for Apple for various foundry companies has also shifted to the Indian battlefield, which is dark.

Picture source: Sohu.com

India's foundry began to undertake a large number of Apple parts assembly.Although India's foundry quality is generally low, the Indian government and enterprises actively promote the improvement of production technology and management levels, and strive to improve product quality.This has made India the new OEM of Apple and provided it with a good opportunity for development.

Foxconn, the "royal foundry" of Apple, has always been regarded as Apple's most competitive founding king in India. Foxconn itself is also full of energy and constantly increase its investment in India.However, Foxconn's performance in India is far less smooth in India, and it can even be said to be difficult.

This seemingly opportunity market is actually hidden in huge risks.Xiaomi, who has occupied the Indian mobile phone market for many years, has frozen 4.8 billion yuan in assets by the Indian government on the grounds of "violating the foreign exchange law" last year.In addition, mobile phone manufacturers such as OPPO, Vivo, Huawei, ZTE, etc. have also been treated with similar treatment in India.

Foxconn encountered many policies and employment problems in India. Not only did he operate only 35,000 workers for many years, it was less than the zero of Foxconn workers in India, but also continued strikes and fires, which caused Apple's Indian supply chain to suffer a serious crisis.

As a result, Foxconn has become increasingly losing the favor of Apple. It has lost a lot of OEM share, and even the exclusive orders of high -end mobile phones such as iPhone15 Pro have been allocated to competitors and Scholar Hexun Precision for the first time.

India's manufacturing frequently faces challenges in India foundries

Foxconn's encounter in India also provides more founders with a warning.The trend of Apple's "de -Indianization" not only brought tremendous pressure on Indian foundries, but also caused Indian suppliers to be at the low end of the industrial chain, with a small profit margin.This is mainly because Indian suppliers mainly provide component assembly services, lack of core technology mastery and intellectual property protection, and are easily abandoned by Apple.

Picture source: Netease

Apple supply chain is a complex system that involves multiple countries and regions, many industries and fields, multiple enterprises and organizations, as well as changes in many policies and markets.In such a series of backgrounds, as another country in Asia with a huge consumer market and cheap labor, India has become an emerging market that Apple is concerned about.

In fact, in recent years, the word "India" has frequently appeared in news reports.Well -known companies such as Tesla and Apple have all the layout of production lines in India, causing many discussions on the rise of the Indian manufacturing industry. However, the real "manufacturing" is not just the introduction of some foreign capital and technologies to assemble products.

More importantly, it is necessary to have its own technology and brand, and to promote the development of manufacturing through independent innovation.As the dilemma currently encountered by Indian foundries, it is necessary to change development ideas, strengthen the cultivation of independent research and development and innovation capabilities, enhance the value of product technology, and increase the status and profit space in the global supply chain.At the same time, we should also actively develop local brands and enhance the market competitiveness of independent brands to reduce dependence on foreign brands.

Source of data: First Financial Economics, Core List, Huashang Tao Lue, Market value observation, Daily Economic News