Just like Foxconn and Wistron Corp, Apple’s existing make in India partners, Pegatron is also planning to establish a local subsidiary in South India.
Prime Minister Narendra Modi’s poster “make in India” initiative is set to get a major shot in the arm as the world’s second largest iPhone manufacturer, aka Pegatron, is setting up a base for local assembly here, according to a new Bloomberg report. Just like Foxconn and Wistron Corp, Apple’s existing make in India partners, Pegatron is also planning to establish a local subsidiary in South India. Though the exact location and timeline for all of this remains a mystery for now.
Foxconn makes the iPhone XR in Chennai while Wistron makes the iPhone 7 in India in Bengaluru. Both Foxconn and Wistron have boosted local production after the government of India launched the production-linked incentive (PLI) scheme recently to encourage domestic manufacturing (and assembly) of smartphones in an attempt to help make the country self-reliant. The government in fact is pushing for brands to bring their entire supply chain machinery to India and not just assemble products here.
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With an air of unrest around China, it’s not surprising to see Apple, a US company, also pushing to move more and more manufacturing to outside of China and India will be without a doubt one of the beneficiaries (as is also highlighted by the new move). Pegatron already has a number of factories in China and is said to rely on Apple for more than half of its business. Apple roping in a third manufacturer for India also makes a lot of sense from a business point of view. With Foxconn and Wistron both looking to expand India operations (both are contract manufacturers that make a lot of other products and not just iPhones) Pegatron’s presence will help Apple protect (and even boost) local iPhone manufacturing.
There are reports that Apple is looking to make more iPhone models in India, including the recently launched iPhone SE 2020. The original iPhone SE was also made in India before it was phased out recently. There were also rumours that Apple could start making the iPhone 11 in India, but apparently those plans were put on hold due to a lack of supply chain and labour skilled enough to “produce the high-end, organic light-emitting diode models.”