Apple has been producing goods in India for a while now, and it appears that the company’s gamble has paid off. Recent sources indicate that between April and August, Apple’s iPhone exports from India doubled, showing a considerable surge in demand.
Apple’s attempts to increase local production appear to be paying off, as evidenced by the sharp increase in exports. This is great news for India’s economy, since the government has been working to boost domestic production and exports.
This article will dive deeper into the causes of this expansion and analyse its implications for both Apple and India’s economy.
History of Apple’s Indian Factory
Since 2017, when it began producing the iPhone SE, Apple has had a manufacturing presence in India. Since then, Apple has increased local production to include not only the iPhone XR, but also the iPhone 11, and the iPhone 12 series.
Since labour and production expenses in India are often lower than in other nations, the corporation has decided to manufacture there in order to save money. This shift would also help Apple comply with local sourcing regulations in India, which mandate that foreign corporations produce a minimum amount of their goods domestically.
When did iPhone exports start skyrocketing?
As was previously indicated, Apple and the Indian economy might take heart from the recent uptick in iPhone exports. This expansion can be attributed to a number of factors:
Producing and Purchasing Closer to Home
Exports from India have increased significantly because to Apple’s local manufacture there. Exports have increased as a result of the company’s increased reliance on domestic production and its decreased reliance on foreign suppliers.
The company has also been able to cut expenses and increase local production by purchasing more components locally.
Grow ing Interest
The increasing demand for iPhones around the world is being felt in India as well. Apple’s market share and exports have grown as the company’s products have become increasingly popular in the country.
In addition, the growing popularity of telecommuting and online learning has raised the need for mobile devices, such as smartphones, which has in turn boosted sales for Apple.
Apple is one of the businesses that has benefited from the government of India’s efforts to encourage domestic production and exports.
The government of India offers advantages to businesses like Apple that choose to manufacture in the country through programmes like the Production Linked Incentive (PLI) scheme. Because of this, the business has been able to cut costs and become more competitive in the Indian market.
What Implications Does This Have for Apple and the Indian Economy?
Apple and the Indian economy may both rejoice on the rise in iPhone shipments out of India. Apple sees the increase in exports as proof that its efforts to increase domestic production and sourcing are successful.
India’s attempts to boost domestic production and exports have paid well, as seen by the country’s recent export boom. India has the potential to become a manufacturing hub for electronics and other items, promoting economic growth and creating jobs, if more corporations, like Apple, invest in local manufacturing.
Apple’s April-August growth in iPhone exports from India is encouraging for the company and the Indian economy as a whole. More businesses are likely to invest in India as a result of the government’s efforts to encourage domestic production and exports; this should stimulate the economy and lead to the creation of new jobs.
Rene Bennett is a graduate of New Jersey, where he played volleyball and annoyed a lot of professors. Now as Zobuz’s Editor, he enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.