Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that India’s Minister of Electronics and Information Technology issued a statement saying Apple’s latest iPhone 16 will be produced in Indian factories and sold globally. Prime Minister Modi’s “Made in India” plan is currently promoting the creation of iconic products for the world. Apple has been working hard to move its supply chain to India. The Indian government is also encouraging more companies to manufacture locally in India, and has reduced the import tax on parts required for mobile phone production from 15 percent to 10 percent. Apple currently plans to produce more than 50 million iPhones in India this year, including the iPhone 15 and iPhone 16 series.
Previously, it was reported that the yield rate of Indian factories is only 50 percent, which is far from Apple’s standards, and the sanitary conditions of the manufacturing facilities are unqualified. However, Foxconn Chairman explained that the yield rate of iPhones produced in India is no different from that in China. The 50 percent yield rate refers to the production of iPhone cases manufactured in factories affiliated to the Tata Group, not the iPhone yield rate.
There are currently four foundries for the iPhone 16 series, namely Foxconn, Luxshare, Pegatron and Tata Group. Foxconn and Pegatron have factories in both China and India, while Luxshare only has factories in China and Tata only has factories in India. From the perspective of production location allocation, China and India already have a 1:1 ratio. However, as Apple requires Foxconn and other OEMs to invest in India, it is likely that by the time the iPhone 17 is released next year, India’s iPhone production capacity will surpass China’s.
Source: Sina, September 12, 2024
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