According to Rajkot Updates News, Apple’s iPhone exports from India doubled between April and August. This is a significant increase and suggests that Apple’s products are in high demand.
This is a great sign for the Indian economy. If Apple’s iPhone exports continue to grow, they could create massive economic opportunities for India. In this article, we will discuss about rajkotupdates.news:apple-iphone-exports-from-india-doubled-between-april-and-august.
India is one of the largest markets in the world for smartphones, and it’s a big market for Apple too. Its revenue in the country grew 45% in the year ended March 2022, with most of it coming from iPhone sales.
The demand for iPhones in India has increased dramatically, particularly in the higher price segments. This is thanks to the availability of credit-card equated monthly instalments (EMIs) and small personal loans, which have made premium devices more affordable for Indian consumers across all income groups.
Analysts and larger electronics retailers say that these factors have led to a significant increase in the number of Indian consumers buying iPhones. This is a good thing for Apple as it will help the company sell more iPhones and maintain its leadership in the country.
Moreover, it will help Apple to grow its India-based manufacturing base, which has been growing in recent years. It now assembles about 7 percent of its total iPhone production in India, up from 1 percent in 2021, according to research firm Counterpoint Technology Market Research.
As a result, India is expected to become a major hub for iPhone manufacturing in the near future. As part of that plan, Apple plans to shift some of its iPhone production away from China to India, which could mean a big boost for the Indian market and for the local manufacturers who have become a major source for Apple’s supply chain.
For instance, the Taiwanese contract manufacturers Foxconn, Wistron and Pegatron have already built factories in India. Some companies like autos-to-airlines conglomerate Tata Group, which is in talks to buy Wistron’s Indian plant, have also stepped up their investment in the country.
However, there are still some obstacles that need to be overcome before India can replicate a Shenzhen-like hotspot for electronics manufacturing in the country. That includes accessing land for factories, and the ability to attract more companies in the supply chain to set up operations here, said Pathak.
The Indian government is also trying to promote more Indian-based manufacturing in the country. It has launched an initiative called the People’s Livelihood Initiative (PLI) to provide incentives for businesses and individuals to invest in the country. The government has also tried to improve infrastructure and make the country more attractive for foreign investors.
As Apple ramps up iPhone production in India, the Cupertino company is making a bet on local manufacturing as an alternative to China. The Cupertino-based company has partnered with Foxconn Hon Hai and Wistron, both of which have iPhone assembly plants in India, to make iPhone 11, 12, and 14 models locally.
These devices are exported to the rest of the world for sale, mainly in Europe and the Middle East. Apple is aiming to increase these outbound sales in the coming years, as it seeks to boost its share of iPhone exports and become the most important electronics manufacturer on the planet.
The latest report suggests that Apple is making a lot of progress in its Indian manufacturing push. The firm’s exports from India doubled between April and August last year, according to Bloomberg News, and are expected to reach $2.5 billion by March 2023.
This is a good sign for India, which has been pushing for the nation to become a hub for electronics manufacturing and is looking to attract high-end manufacturers like Apple to its shores. Its push has been supported by the government, which is rolling out a series of initiatives to encourage the country to transform itself from a service economy into a product economy.
One of the key factors driving this shift is a strong and growing labor market, which provides cheap labour for a wide range of industries. These companies are able to hire large numbers of employees with low pay and benefit from a lower cost of production, which is critical for achieving economies of scale.
Economies of scale allow businesses to reduce their costs and improve their profitability, which in turn drives growth and creates jobs. As a result, global sourcing of labour is becoming more and more common across all sectors as companies seek to compete with each other on price and quality.
The price of labor in India has dropped significantly, largely due to the large supply of available workers, which has created price competition and led to lower wages. This has also resulted in a higher emphasis being placed on labour efficiency. In the end, this has helped drive economic growth and increase income levels for many citizens in India.
Local Sourcing Requirements
India is seen as one of the world’s fastest-growing smartphone markets. Apple sees this as a potential growth opportunity, especially with the increasing wealth and rising disposable income of Indian consumers.
Despite India’s rapid growth, Apple has faced some challenges in its efforts to manufacture iPhones and other devices here. The company has struggled to find local suppliers who can comply with its stringent responsibility policies. In addition, the country’s manufacturing industry is less developed than China, and a shortage of skilled labor and manufacturers able to produce smartphone components has made it harder for Apple to diversify its supply chain.
As part of its effort to diversify its supply chain, Apple has begun expanding iPhone production in India. It is assembling its latest model, the iPhone 13, at a plant in Tamil Nadu. It also plans to build iPad tablets and AirPods in India.
But to do so, Apple will have to pass a tough local sourcing test in order to open its own stores in the country. As per local FDI rules, companies need to source at least 30 percent of their parts and components in India to be allowed to set up retail stores.
While this is not the first time Apple has faced this challenge, it is an especially difficult hurdle for a company that has long relied on Chinese suppliers. The company is also being impacted by recent disruptions at Foxconn’s Zhengzhou plant, which affected global supply of its marquee products.
In a bid to help Apple diversify its supply chain, India has recently granted initial clearances for a dozen Chinese suppliers to expand in the country. They include a unit of lensmaker Sunny Optical Technology Group Co.
Moreover, the country has a program that will provide incentives for companies to invest in India. This program will give companies a 4-6 percent incentive on incremental sales for goods produced in India.
The government will review the eligibility criteria for this program in the near future and the program could be expanded to other high-technology segments. It is also possible that a waiver will be given to Apple, but only in the event of a “state-of-art” or “cutting-edge technology” investment.
Trade data for April-August shows that India’s current account deficit (CAD) jumped to USD 32.6 billion, an increase of 30 per cent from the previous year. The higher imports of electronic goods, coal and oil boosted the gap, according to Ajay Sahai, director general of the Federation of Indian Export Organisations.
During that period, oil imports rose by more than triple to USD 2.4 billion, while electronic goods imports grew by nearly 30 per cent. It is hoped that global commodity prices would ease in the months to come, Sahai said.
Apple has been making some of its iPhones in India for a few years now, but its goal is to manufacture about 25% of its iPhones there by 2023. It plans to move assembly of some AirPods and Beats headphone production there as well.
This is an important step for Apple, which wants to diversify its supply chain, bringing manufacturing out of China and creating higher-quality, more durable products. It also wants to reduce the costs of transportation, including freight and insurance.
But the move to manufacture in India will likely not have a large impact on its overall operations for years to come. The bulk of its production still takes place in China, where 98 per cent of iPhones are made, Ives said.
In order to keep up with demand, Apple needs to make sure that the iPhone remains competitive in the US market, which is why it is aiming to reduce costs as much as possible. The company is also seeking to diversify its supply chain by bringing some suppliers into the US, where they can be taxed more favorably.
The iPhone X is made in China and sold in the US, but Apple’s profit is accrued in Europe and the US, so that the value added in those countries is far greater than what would otherwise be reported in the Chinese trade statistics. The economists Xing and Detert (2010) use the iPhone as a case to show how conventional trade statistics greatly inflate the US trade deficit with China. To know more about rajkotupdates.news:apple-iphone-exports-from-india-doubled-between-april-and-august just click on the below link: rajkotupdates.news:a-ban-on-fake-youtube-channels-that-mislead-users-the-ministry-said