The biggest buzz in the technology domain is the recent update by the world’s most valuable brand starting the assembly of its most promising product iPhone 12 in India. The Indian unit of the company’s contract manufacturer Foxconn will begin operations in Southern Tamil Nadu.
It is a big news as this time the target is straightaway at the world’s second as well as biggest market demanding smartphone which is India. The company has been constantly working on transferring its production spaces from China to other prospective markets to avoid the issue arising between the capitals of countries.
INVESTMENT
Apple has three prominent suppliers which are Foxconn, Wistron and Pegatron. All of them have planned out to invest strategically a total of Rs. 6450 crores in boosting up the infrastructure in India in the coming five years. This plan is also beneficial from the point of view of New Delhi’s export scheme. The government has set up a target to export mobile phones of total Rs. 48,660 crores in the coming timeline. It is an effort to make India a prominent market to manufacture smartphones in the coming 10 years.
FUTURE PLANS
The company will not put a full stop here itself. It is been claimed through reliable sources that Apple will slowly bring the assemble of its iPad too in the Indian market. Apple Inc. has always set an example not only for its high end tech creativity but also for its strategic decisions.
BENEFITS
The evergreen question is that WHY???? Why such a big decision is necessary and what can be the expected gains or losses?
The benefits enjoyed by the company and the host country are to be studied wisely to understand the dynamics.
- The step to enter Indian markets was taken initially by the brand in the year 2017 and this is a major turn to get deep into the markets having the largest group of buyers across every domain.
- The other major reason was to get benefitted from the country’s Production Linked Scheme (PLI) started under the umbrella of a countrywide initiative of Make In India; which will amount to $ 6.6 billion.
- The scheme offered a policy of providing 6%incentive on the goods that will be produced in the country over a five year period. The government planned a $150 billion intake into the smartphone production market.
- This opportunity was grabbed by the contract manufacturers of Apple straight away.
- The nation welcomed this move as it will directly or indirectly boost the employment levels to a total of 1.2 million Indians. Wistron is planning to recruit 10000 staff.
- It can also be expected that the prices of iPHONE range for Indians could see a downtrend as the amount of import duties will reduce a lot.
India’s IT Minister Ravi Shankar Prasad also applauded the company’s effort in order to build up a integral & efficient ecosystem between the global value chains.
World’s most valuable and largest information technology company having global presence in over 25 countries has entered the Indian market with high hopes and definitely high stakes as it was a decision to leave a major market. But it will definitely not be a decision to regret!!
