Home Featured Good News For Apple Users – Apple plans to expand manufacturing in India – Technical Gyaan
Apple Shift To india - technical Gyaan

Good News For Apple Users – Apple plans to expand manufacturing in India – Technical Gyaan

by Technical Gyaan

HIGHLIGHTS

  • Apple manufacturer Wistron will hire 10,000 employees for the local production of the iPhone 12.
  • The company has already hired 2000 employees and will function from its plant in Narasapura in Karnataka.
  • The local production of iPhone SE is also slated to begin at the end of this year.


Wistron, Apple’s Taiwanese manufacturer, has started the hiring processes for the local production of iPhone 12 components in India. The Made in India iPhone 12 will be out by the middle of next year, a report by Business Standard stated. Wistron has planned to invest over 2,900 crores in India to ramp up the efforts for the local production of the iPhone.

The setup for iPhone production at the Narasapura plant is located in Kolar district, about 70 km from Bengaluru, New Indian Express noted. Wistron was allotted 43 acres by the Karnataka Industrial Areas Development Board (KIADB) when it announced its plans for production in 2017. As per the report, the manufacturing company at Kolar is supposed to generate 10,000 jobs. Wistron has already hired 2,000 locals.

Sources familiar with the matter told the New Indian Express that the hiring will take place in a phased manner. As of now, walk-in interviews of diploma graduates are being conducted. More interviews with experienced people, as well as freshers, will be held soon. Wistron has started trial production and by September it will start the commercial production of iPhones in Kolar.

Apple Shifts To India -by technical gyaan
Apple Shifts To india By Technical gyaan

It is not clear which product will be assembled in the manufacturing unit. However, reports in the past have stated that Wistron’s manufacturing units at its new plant in southern India will assemble printed circuit boards (PCBs) for iPhones.

PCB may be a bed for key components like processors, memory, and wireless chipsets that are the guts of a device. Once assembled or populated with components, PCBs account for about half the cost of a smartphone, Reuters noted.

The local production of iPhones will save on the 22 percent import taxes and create new job opportunities for the locals in India. The iPhone 12 will be the seventh iPhone model to be manufactured in India, giving a boost to the government’s ‘Aatmanirbhar Bharat’ initiative. Apple has so far produced a number of iPhone models locally including the iPhone SE (first generation), iPhone 6S, iPhone 7, iPhone XR, and iPhone 11. The local production of iPhone SE (second generation) is also slated to begin shortly.

Last month, Wistron’s rival Foxconn started producing iPhone 11 at its Chennai plant. It was the first time Apple manufactured a top-of-the-line model in India. After the beginning production of the iPhone 11 in India, Apple is looking at the local production of iPhone 12 and assembly of iPhone SE (second generation) models. iPhone 12 is slated to release sometime in October.

Apple, which still makes most of its iPhones in China, has gradually moved to expand production in other countries like Washington and Beijing as per a report by Reuters.

Apple’s iPhone contract manufacturer is eyeing India for re-location of its production lines from China, Apple currently assembles iPhones in India via contract manufacturer Foxconn and has recently manufactured the primary iPhone 11 from its Foxconn plant situated near Chennai.

According to The Times of India report, Apple is likely to shift 6 production lines from China to India to cater to export demand of around $5 billion as well as serving to the domestic one.

Not only Apple will manufacture iPhones but it may also produce computers, tablets and laptops later, the TOI report said.

Apple Shift To India
Apple Has Been Manufacturing In India – By Technical Gyaan

Already, Apple has been manufacturing iPhone XR within the country. With locally producing iPhones in India, Apple saves 20 percent tax that it is needed to pay as a part of the import duty.
Apple seeking benefits of Production Linked Incentive scheme in India
Apple’s contract manufacturers have submitted proposals to avail benefits under the government’s Rs 50,000 crore production linked incentive program for enhancing electronics manufacturing, sources said. According to proposals, companies like Samsung Lava, Dixon, and iPhone contract manufacturer look to provide mobile devices and components worth over Rs 11 lakh crore within the subsequent five years.

Apple recently started manufacturing its iPhone 11 within the Indian market through Foxconn’s plan in Tamil Nadu. Now, it seems that the US-based tech giant’s vendor is looking to shift its production line from China to India.

As per the report coming from TOI, a contract manufacturer for Apple is planning to shift around six production lines from China to India. This is being seen as an effort to decentralize and diversify the supply chain.

The company is also reportedly looking to export iPhones from India worth around $5 billion. Apart from this, it will also be catering to the domestic market and could lower the pricing of the iPhones, which are among the highest in the world.

There’s a possibility that the production line could expand capacity and along with iPhones, could also include iPad, iMac, and MacBook in the coming years. The new production line in India is expected to generate around 55,000 employment.
Recently, Telecom and IT Minister Ravi Shankar Prasad claimed that around 22 domestic and international companies have applied for mobile production in India worth ₹11 lakh crore for over five years.

He named companies like Samsung, Lava, Dixon, etc. It is reported that international companies that have applied also includes Foxconn Hon Hai, Rising Star, Wistron, and Pegatron, all of which are contract manufacturers for Apple iPhones.

It is worth noting that nothing has been confirmed yet and the shifting of production is said to be at the planning stage. Even if the companies go ahead with the plan, it is likely to take time to set up facility as well as supply chain and get the necessary permissions as well as grants from the government.

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