Apple sees India as the next key driver for growth, a top analyst said Friday, only days after Cupertino reported “near doubling” of revenue in the country for the third quarter ended June 2022.
After the iPhone 11, 12, and 13, Apple seems geared to, also, make the upcoming iPhone 14 in India but the bigger news is, shipping may occur “almost simultaneously with China” for the first time in the company’s history. Foxconn will reportedly be its manufacturing partner.
With the looming unrest around China, it is not surprising to see Apple, a US company, pushing to move more and more manufacturing outside of China.
According to analyst Ming-Chi Kuo, the move to build a non-Chinese iPhone production site would help reduce the geopolitical impacts on supply of the iPhone 14 which is due to launch in September alongside the pro iPhone 14 models.
India’s iPhone shipments would have a considerable gap with China in the short term, Kuo notes, but this would be an important milestone, regardless, considering that India has been one quarter or more behind in the past.
Elsewhere, local assembly should help Apple save on import duties and have tighter control over supplies while expediting market availability of the iPhone in the world’s fastest growing smartphone market.
Apple started manufacturing iPhones in India in 2017 with the first-generation iPhone SE. Its current-generation iPhone 13 is made by Foxconn in southern Tamil Nadu state. Foxconn also makes the iPhone 12 and iPhone 11 in India.
Despite being the world’s most valuable company, Apple has struggled to get a toehold in the 1.3 billion-strong India market. It is showing signs of progress, though.
CEO Tim Cook, during a recent earnings call, had highlighted a near doubling of revenue in the country while CFO Luca Maestri said the company had set an all-time sales record in its services business while pointing out how enterprise customers were “increasingly investing in Apple products as a strategy to attract and retain talent.”