Apple Expands Indian Manufacturing with iPhone 11 Production
Apple has taken a significant step in its India expansion strategy by beginning local assembly of its flagship iPhone 11 models. According to industry sources, Foxconn - Apple’s primary contract manufacturer - has commenced production at its Chennai facility, marking a pivotal shift in the tech giant’s global supply chain.
Key Developments in Apple’s India Strategy
- Current-Gen iPhone Production: This marks the first time Apple has manufactured its current-generation iPhone models in India
- Initial Shipments: Small batches of locally assembled iPhone 11 units have already reached Indian retailers
- Production Scaling: While current yields remain limited, Apple plans significant expansion of its Indian manufacturing operations
Strategic Importance for Apple
India represents the world’s second-largest smartphone market, and local production offers Apple several advantages:
- Cost Reduction: Avoids 20% import duty on foreign-made electronics
- Market Penetration: Strengthens position in premium smartphone segment ($400+ devices)
- Supply Chain Diversification: Reduces reliance on Chinese manufacturing amid global trade uncertainties
Evolution of Apple’s Indian Manufacturing
Apple’s manufacturing journey in India has progressed through several phases:
- 2017: Wistron began assembling older iPhone models (SE, 6s, 7)
- 2019: Transition to newer models with iPhone XR production
- 2020: Discontinuation of older model assembly, focus on current-generation devices
Government and Industry Support
India’s Commerce Minister Piyush Goyal confirmed the iPhone 11 production shift via Twitter. This development aligns with:
- India’s $6.6B incentive program to attract smartphone manufacturers
- Foxconn’s $1B investment plan to expand Indian operations
- Pegatron’s upcoming entry into the Indian manufacturing landscape
Competitive Landscape
Apple joins other major smartphone brands that have established local production:
- Xiaomi (market leader with near 100% local production)
- Samsung
- Vivo
- Oppo
- OnePlus
Future Outlook
Despite current challenges in scaling production, Apple remains committed to its India strategy:
- Online store launch planned within months
- First physical retail store expected in 2021
- Premium market dominance with 1% overall but strong high-end share
Industry analysts note that Apple has weathered the pandemic better than compe*****s in India, positioning it well for future growth as local manufacturing capabilities expand.
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