The giant American company Apple has given another blow to China. Another of its suppliers, Pegatron, has started manufacturing (assembling) the iPhone 14 in India. This is Apple's second supplier and the only third company to manufacture the iPhone 14 in India. The Bloomberg report states that the Indian government's policies to attract foreign companies and China's strict policy regarding Kovid is beginning to show.
Apple is trying to reduce its dependence on China. Apart from this, due to the increasing case of the corona, there is a lockdown in China. Thousands of employees of Apple's largest manufacturing unit Foxconn are suffering from Corona. That's why the work has stopped there. Foxconn has been making the iPhone 14 in India since September, fearing a drop in production. Apple currently manufactures the iPhone SE, iPhone 12, iPhone 13, and iPhone 14 models in India.
PLI scheme eases Apple's path
The report said that India is positioning itself as a competitor to China's manufacturing capacity. In addition, due to rising tensions between the US and China and Beijing's Kovid zero policy, Apple is looking for alternative production centers. The Indian government made the center election easier for Apple by announcing the Production Based Incentive (PLI) scheme.
iPhone makers Foxconn, Wistron, and Pegatron are in the expansion stage in India. In China, companies are looking to increase iPhone production before the New Year, but this is not possible due to Corona.
Wistron and Foxconn to open new facility
Foxconn and Pegatron have production units in Tamil Nadu. Wistron manufactures iPhones in Bangalore. Wistron is about to open another production facility in Kolar by the end of November, an official said. Production in it will start in January.
Wistron currently has four assembly lines to manufacture the iPhone-14 at its facility in the Kolar Industrial Area. Foxconn is about to set up another factory near its Chennai unit. Pegatron first started making iPhones for Apple in September.
All three companies are part of the incentive scheme
Foxconn, Pegatron, and Wistron are all part of the government's Rs 41,000 crore PLI scheme. Foxconn and Wistron have achieved the target of the first year in 2021-22. Pegatron started making iPhones this year. She will also be eligible to claim the benefit till March 2023.
iPhone production may decrease in China
China's contribution to global iPhone shipments is expected to decline to 91.2-93.5 percent in 2022. In 2021 it was 95.8 percent. India's contribution to global shipments will increase from 5 percent to 7 percent by the end of this year. 85 percent of the domestic demand will be met from the production happening in the country.
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