Will India crush China's dream to become world's largest iphone maker?

India is now set to become the world's largest iPhone producer. American smartphone giant Apple is planning to expand its production units outside China. According to sources, India is estimated to have the highest share in iPhone production at the local level.

Foxconn, Pegatron and Wistron are benefiting from the government's Rs 41,000-crore manufacturing-related PLI scheme, which will boost iPhone production in India.

Apple is gradually transferring a large part of iPhone production to India amid tensions between China and the US. According to experts, due to the Covid lockdown in China, many problems have arisen in production, thus the company has accelerated its plan to shift manufacturing.

After Foxconn started making the latest iPhone 14 in September in India, another Apple supplier started assembling the model in the country last month. Pegatron Corp has become the second Apple supplier in India to make the iPhone 14 in India and plans to invest Rs 1,132 crore between FY23 and FY25 under the production-linked incentive (PLI) scheme for smartphones.

Moreover, Apple’s decision to shift production out of China is part of its longer-term goal to ship 40 per cent to 45 per cent of iPhones from India.

The iPhone maker has told its manufacturing partners that it wants them to start trying to do more of this work outside of China

Last month, several protestors were seen throwing items and shouting “Stand up for your rights!” in videos that went viral as they expressed anger over wages and Covid-19 restrictions.

Apple currently manufactures the iPhone SE, iPhone 12, iPhone 13 and iPhone 14 (basic) models in India. All Pro models sold in the country are imported. According to Navkender Singh, Associate Vice President of IDC India, Apple will assemble the Pro model in India. As it gears up to move out of Covid-hit China, Apple has asked its suppliers to actively look for assembling Apple products elsewhere in Asia, particularly India and Vietnam. The tech major is also looking to reduce its dependence on Taiwanese assemblers led by Foxconn Technology Group.