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How big is the threat to China's manufacturing of the iPhone 13 in India?

How big is the threat to China's manufacturing of the iPhone 13 in India?

Text/Dong Review/Zi Yang Proofreader/Zhi Qiu

In order to be able to make greater profits, in recent years Apple has focused on OEM production on Indian manufacturing. Although it is said that due to the rebound of the epidemic in India, Foxconn's development in Indian foundries has been limited, which has affected the shipment of Apple's related products to a certain extent.

But now, after the epidemic in India has eased, Apple has once again set its sights on Made in India.

Apple produces the iPhone 13 in India

According to reports released by Indian media, in order to better meet the needs of the Indian domestic market and the needs of exports, Apple expects to produce iPhone 13 in India on a large scale in February 2022.

However, as of now, Apple has not responded to relevant news. Industry insiders said that the current Indian factory iPhone13 production work, stay in small-scale trial production, if the trial production is not successful, will not officially enter the iPhone13 mass production stage at the agreed time.

How big is the threat to China's manufacturing of the iPhone 13 in India?

For industry insiders to interpret the news that "Apple will produce iPhone 13 in India", Apple did not plan to produce the iPhone 13 Pro and iPhone 13 Pro Max in India. But Apple's large-scale mass production of the iPhone 13 in India is enough to arouse widespread concern from people inside and outside the industry.

Judging from a series of moves by Apple in recent years, in order to meet the needs of the Indian market, it has opened a model for mass production of iPhone products in India. At present, Foxconn's Indian factory is working on the best-selling iPhone 11 and iPhone 12.

It is reported that Apple's iPhone products sold in India have been able to reach 70% of local manufacturing.

How big is the threat to China's manufacturing of the iPhone 13 in India?

Foxconn is the first to look forward

In the face of Apple's move, Foxconn naturally took the lead and produced the iPhone 13 in India.

Although there is a certain gap between the quality of India's manufacturing industry and the quality of workers compared with China. But what cannot be ignored is that compared with the Chinese market, India's labor market is larger, more abundant labor, and lower wages.

At the same time, although in recent years, India's support for industrial electronics manufacturing has also been increasing. For example, as early as 2012, the Indian government drafted relevant "national electronic policies" to support the development of India's electronic systems and manufacturing industries.

With the support of this policy, many mobile phone manufacturers around the world have invested in india to build factories, which has promoted the development and improvement of the upstream and downstream industrial chain of Indian mobile phones and achieved a virtuous circle.

Therefore, foxconn closely followed apple's pace in producing iPhone 13 in India, on the one hand, to meet the needs of large customers Apple; on the other hand, it did not give up the high profits in the Indian market.

How big is the threat to China's manufacturing of the iPhone 13 in India?

How big is the threat to China?

Although many people in the industry have not fully attached importance to the development of India's manufacturing industry, the Chinese digital circle has always had a saying that "India will not replace China's mobile phone industry chain". However, Yang Xuhong, deputy general manager of the Industrial and Commercial Bank of China India Mumbai Branch, pointed out to the point that the above ideas are outdated.

Even if the current investment environment in the Indian mobile phone market still has certain defects, there is considerable potential for development, and the Indian government actively gives relevant policy support.

Based on the profit-seeking nature of capital, many Chinese mobile phone manufacturers have produced and exported mobile phones in India.

Coupled with the current United States is sparing no effort to suppress China's semiconductor industry, in October 2021, the Indian government approved the investment plans of Taiwanese companies such as Foxconn, Wistron Capital, Pegatron Group and other Taiwanese companies in India, if Taiwanese companies actually completely transfer the mobile phone production industry chain to the Indian market, the mobile phone production industry chain in the Indian market will tend to be perfect, then India wants to catch up with China in the mobile phone production foundry track, it is only a matter of time.

How big is the threat to China's manufacturing of the iPhone 13 in India?

Write at the end

Therefore, for the current Chinese enterprises, we must attach great importance to the development of the mobile phone manufacturing industry in the Indian market, once India unconsciously surpasses China, the transfer of the domestic mobile phone industry chain to India is no longer a matter of fantasy that the industry thinks.

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