American tech giant Apple has unveiled its latest iPhone series. During a recent event on Monday night, Apple launched the iPhone 16 series, which includes four models: iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max.
The iPhone 16 is the most affordable model, starting at ₹79,900. Meanwhile, the highest-priced model, iPhone 16 Pro Max, starts at ₹144,900. The iPhone 16 Plus costs ₹89,900, and the iPhone 16 Pro is priced at ₹119,900.
In India, pre-orders for these models will commence on September 13, with sales beginning on September 20.
Whenever Apple releases new iPhone models, it is humorously said that one might have to sell a kidney to afford one. This year, the highest-priced iPhone model costs ₹184,900 for the 1TB memory variant of the iPhone 16 Pro Max.
In the Indian smartphone market, Apple iPhones have approximately a 4% market share, while globally, Apple holds a 16% market share. Even if iPhones don’t sell as much in India, their global sales greatly benefit India.
How Does Global iPhone Sales Benefit India?
Apple began iPhone production in India in 2017. Apple's three main suppliers are Foxconn, Pegatron, and Wistron, with Foxconn being the largest supplier. Foxconn is a Taiwanese company that manufactures iPhones.
The majority of iPhones manufactured in India are produced by Foxconn, accounting for 67% of the production. The remaining production is divided between Pegatron and Wistron.
Foxconn and Pegatron have manufacturing plants in Chennai, Tamil Nadu, while Wistron’s plant is in Bengaluru, Karnataka. Last year, Indian company TATA acquired Wistron for $125 million. Currently, TATA is in talks with Pegatron to start a new manufacturing plant in Chennai, where iPhones will be made.
The manufacturing of iPhones in India not only aids in competing with China but also boosts the manufacturing sector in the country. To compete with China, India needs to grow its manufacturing sector, and the production of iPhones significantly contributes to this growth.
Source: aajtak
What Other Benefits Does India Receive?
In 2023, India manufactured five iPhone models: 11, 12, 13, 14, and 15. Previously, Pro models were not made in India. However, it’s reported that the Pro models of the iPhone 16 series will also be produced in India.
Moreover, according to an Economic Times report, the Pro models of the iPhone 16 series will soon be ready for export as well. When the iPhone 13 was manufactured in India in 2021, it took several months to reach global markets. However, after the manufacturing of the iPhone 14 in 2022, exports began just two weeks later. The export time for iPhone 15 was even shorter, and it was available for sale in India from day one.
Now, with the entire iPhone 16 series being manufactured in India, exports will commence soon. This means that 'Made in India' iPhones will reach global markets in a shorter time frame.
According to reports, the manufacturing of the Pro models from the iPhone 16 series is expected to create around 600,000 jobs in India, including 200,000 direct jobs and three indirect jobs for each direct job.
The Times of India reports that Apple’s three suppliers, Foxconn, Pegatron, and Wistron, employ more than 80,000 people collectively. Additionally, other Apple suppliers employ over 84,000 people.
Source: aajtak
How Many iPhones Are Made in India?
In recent years, mobile phone manufacturing in India has significantly increased. According to the India Cellular & Electronics Association (ICEA), the mobile phone production in India has increased 21 times in a decade.
The report states that in 2014-15, ₹18,900 crore worth of mobile phones were manufactured in India, whereas in 2023-24, the figure rose to ₹410,000 crore. Notably, the export of mobile phones from India has surged. In 2014-15, only ₹1,556 crore worth of mobile phones were exported, compared to over ₹120,000 crore in 2023-24.
Apple has played a significant role in boosting India's mobile phone exports. Out of the iPhones sold in India, 99% are 'Made in India'. Only the Pro models are imported.
Currently, 14% of the iPhones sold worldwide are manufactured in India, equivalent to 1 in 7 iPhones globally being 'Made in India'. The target is to increase this figure to 25% by 2025-26. While most iPhones are still produced in China, Apple is increasing its manufacturing in India to reduce its dependence on China.
A report mentions that in 2023-24, ₹120,000 crore worth of iPhones were manufactured in India, with approximately ₹85,000 crore worth of iPhones exported.
Source: aajtak
Benefits for Apple Too!
The demand for iPhones is highest worldwide. However, due to their high prices, not everyone can afford them. Despite this, Apple holds the largest market share in the global smartphone market.
The manufacturing of iPhones in India benefits not only India but also Apple. The presence of iPhone manufacturing in India has increased Apple’s market share in the country.
According to a Forbes report, in 2022, Apple’s market share in India was 4.6%, which grew to 6.4% by the end of 2023. The company aims to increase this to 8% by the end of this year. In 2022, Apple imported 6 million iPhones to India, and more than 10 million in 2023.
The production of iPhones in India has doubled within a year. As per Bloomberg, $7 billion worth of iPhones were manufactured in India in 2022, and this figure rose to $14 billion in 2023. This expansion has significantly benefited Apple as iPhones contribute to half of its revenue.
