It seems like the Government of India’s Made in India initiative has gained a great deal of popularity and significance. In line with this, Apple, one of the leading technology giants of the world, has started to manufacture iPhone 11 in its Foxconn plant in Chennai.
Apple and its products, primarily the iPhones and the Mac machines, are extremely popular across the world. When the company took the decision to manufacture its top of the line iPhone model in India, it surely was a major achievement of the Indian government’s Atmanirbhar Initiative. The Foxconn plant located at Chennai has stared to manufacture the iPhone 11, the company’s flagship product. The confirmation of this recent development was received from the Minister of Commerce and Development, Mr. Piyush Goyal.
This was the first time when this Cupertino-based company has started manufacturing its high-end products in the country. Earlier, the Foxconn plant was used as an assembling center for the the iPhone XR. The company stated that the production will take place in phases. Foxconn also plans to make investments up to $1 billion so as to expand its factory in India where iPhone models are assembled. Pegatron, which is yet another assembler of iPhones, has also made future plans of of investing in the country and setting up a local subsidiary. What is more exciting is that in addition to iPhone 11, Apple also harbors the plan to make iPhone SE 2020 at its Wistron plant located close to Bangalore. The same plant was also the place where the iPhone SE2016 was being manufactured in the year 2017.
India being the second largest mobile market in the world, the company has drawn up plans to scale up its production here with the key aim to reduce the dependency on China where a majority of its products are manufactured. Apple’s products are known to be high priced and often out of reach of the common man. But by selling its products that are made locally, the company will be able to save the 20% import duty that is imposed by India on all electronic goods that have been made on foreign soil. This aside, the locally made product will be less expensive than the imported units.
Apple iPhone 11 is a very popular smart phone in India. The price of the model starts from Rs 68,300/- for the 64 Gb model, Rs. 73,600/- for the 128 Gb model and Rs, 84,100/- for the 256 Gb model. This is less compared to the other models in the same series. The price of the product had also witnessed a 5% surge on account of the increase Goods and Services Tax or GST and the customs duty imposed by the Indian government. The phones manufactured in India might be exported but the company is yet to confirm on this.
As per the top leaders of the company, in the long-term, India is a very important market. The key reason for the company to start manufacturing is to be able to meet the market demand in a reasonable manner and that’s why the company has scaled up the capability of the manufacturing centers here significantly. In addition to India, Apple is also considering Vietnam as another center for the manufacturing its products.
The movement of India from being the manufacturer of low-priced iPhone to the high-end iPhone is definitely very promising. It will surely give a boost to the Indian economy. It will help Apple to accelerate sales by entering into partnerships with various e-commerce companies. Another advantage will be that these products will carry the tag, ‘Assembled in India’.