8 Apple Factories Have Been Shifted From China To India, Said IT Minister

Aadhya Khatri - Sep 09, 2020


8 Apple Factories Have Been Shifted From China To India, Said IT Minister

Apple factories in India have already running to assemble iPhones to cater to the local market

Apple factories in India have already running to assemble iPhones to cater to the local market.

Amid the ongoing border tension between China and India and India’s latest Chinese app purge, Union Minister Ravi Shankar Prasad said that tech giants are looking for new places to manufacture their gadgets, and high on their lists is no other country but India.

So does apple manufacture in China? The answer is yes, but not for long as India is emerging as the new potential nation.

More Than 250 Mobile Factories In India

According to Ravi Shankar Prasad, Samsung has already come to India and plans to expand its operation in the country. He said he had been told that Apple had shifted eight of its factories from China to India.

Samsung factories India
Samsung has already come to India and plans to expand its operation in the country

In 2014, there were only two mobile facilities in the country but now India has more than 250, with Apple factories among them.

The Union Minister also said PM Modi’s aggressive move to ban Chinese apps had been recognized by Australia, Japan, the US, and the UK.

India-China Faceoff At LAC

On Sunday, Indian and Chinese militaries held talks in eastern Ladakh to try to ease the tensions. However, the whole situation is still very delicate as both China and India increase their troops and weapons.

India China Army
On Sunday, Indian and Chinese militaries held talks in eastern Ladakh to try to ease the tensions

According to a government source, the brigade commander-level talks that last four hours failed to result in any tangible outcome.

The Indian army said on Monday that Chinese troops tried to change the status quo on the Pangong Lake’s southern bank on August 29 and 30 and their attempt was foiled by the Indian military.

This is the first major move made by the Chinese after the clash on June 15, which resulted in the death of 20 Indian soldiers. China also has casualties but the country hasn’t elaborated on the exact number. However, according to American intelligence, the number of deaths on China’s side is 35.

Apple Shifts Factories To India

According to a report of the Times of India, one of Apple’s contract manufacturers is shifting six iPhone production lines from China to India. The whole facility is projected to be worth $5 billion.

As stated by sources familiar with the matter, the establishment of new Apple factories may need 55,000 workers a year. In the next few years, the facilities may scale up to make laptops, computers, and tablets as well.

Apple factories India
As stated by sources familiar with the matter, the establishment of new Apple factories may need 55,000 workers a year

This shift of production follows the trade war between China and the US. And when China is no longer the ideal place, India emerges as a competent substitute.

The report reveals that containers loaded with goods from Apple factories have already reached India.

Apple’s Taiwan manufacturing partners including Pegatron Corp, Foxconn, and Wistron Corp have applied for India’s funds to accelerate their smartphone manufacturing.

So far, 22 international, as well as domestic companies, among them, are partners of Apple, Dixon, and Samsung, have submitted their proposals for the Indian government’s PLI scheme.

Apple is having some of its iPhone models assembled by Wistron and Foxconn in two southern states of India.

Another contract manufacturer of Apple – Pegatron, has yet to have its factories in the country but it’s in talks with some states to set up its production lines.

According to Reuters, Foxconn has poured in $1 billion in India to scale up its facility in Tamil Nadu.

If things go according to plan, India might well be the next Apple manufacturing country.

Apple Manufacturing Unit In Bangalore

According to some sources, the iPhone maker plans to assemble its upcoming iPhone 12 in Apple factories in India. As per a report by Business Standard, the much-awaited new iPhone model will be ready to be launched by mid-2021.

iPhone 12 Apple
According to some sources, the iPhone maker plans to assemble its upcoming iPhone 12 in Apple factories in India

It’s believed that production will take place at Bangalore-based Narasapura plant, the new home of Wistron, Apple’s contract manufacturer.

The expected investment for the plan is more than Rs 2,900 crore and the number of workers the company needs to hire is over 10,000.

The plant is expected to begin assembling by October this year with more than 1,000 workers have already started working.

Apple Manufacturing Plant

Overall, Foxconn is manufacturing iPhone XR and iPhone 11 in Chennai-based Apple factories. Wistron and its Bangalore facilities are in charge of making the iPhone 7.

Apple’s iPhone 12

iPhone 12 is the latest model added to the list of Made-in-India smartphones. This will help the iPhone maker evade the 22% tax, thus reducing the cost of the phone.

The saved amount of cost will put Apple in a favorable position to offer a more competitive price and gain a larger market share in India.

However, even with Apple factories in India and the saved tax, there is no guarantee that Indian users will have access to a lower price for iPhones.

The COVID-19 pandemic has pushed the launch date of the iPhone 12 further.

>>> Apple Lost $180 Billion In One Day But It's Still Worth More Than Most Countries

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