Pegatron Starts Assembling Apple iPhone 14 In India: Will The Prices Go Down?

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Pegatron Starts Assembling Apple iPhone 14 In India

Bloomberg's latest report suggests that Apple's Taiwanese manufacturer, Pegatron, has commenced its iPhone 14 assembly line in India. This makes Pegatron the second Apple supplier to assemble the iPhone 14 in the country after Foxconn.

 

Foxconn started assembling the iPhone 14 at its Sriperumbudur factory near Chennai in September. Now, just a month later Apple has added another manufacturer in India to diversify its supply. What are the reasons behind the expansion? Will the prices of the iPhone 14 go down in the country? Let's try to understand.

 

Apple's Expansion Plans In India:

Apple is looking for alternate production hubs as the trade war between Washington and Beijing intensifies. Moreover, the world's largest iPhone manufacturing facility in Zhengzhou was recently put under lockdown following China's zero covid policy. This has put the Cupertino giant on the back foot.

Apple now sees India as a viable alternative to China to manufacture iPhones. So much so that Apple is planning to move a quarter of its iPhone production to India by the year 2025. According to JPMorgan analysts, Apple could move five percent of the iPhone 14 production to India by the end of 2022.

Pegatron has established its manufacturing facility in Tamil Nadu and has employed more than 7,000 employees till now. In addition to this, there are rumors that India's Tata Group is in talks with Apple's Taiwanese supplier Wistron to start iPhone assembly in India. We can only expect the ties between Apple and India to strengthen from here, leaving China in despair.

Will iPhone 14 Prices Go Down In India?

Although Pegatron has started assembling the iPhone 14 in India, the majority of the parts are manufactured in China and are then imported to India. These parts attract import duties in India. Moreover, with the current production constraints that Apple is experiencing, the prices of the iPhone 14 are less likely to fall in the near future.

However, with the new suppliers popping up in the country and Apple's old allies, Foxconn and Wistron in their expansion phase in India, the company may witness a boost in shipments. This in turn is expected to boost India's global shipments by three percent. IDC expects Apple's India shipments in 2023 to cross six million units compared to 4.8 million units in 2022.

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