Will The Prices Go Down? – Gizbot News

According to a recent report by Bloomberg, Apple’s Taiwanese manufacturer Pegatron has started the iPhone 14 assembly line in India. This makes Pegatron the second Apple supplier after Foxconn to assemble the iPhone 14 in the country.

Foxconn began assembling the iPhone 14 at its Sriperumburdur plant near Chennai in September. Now, just after a month, Apple has added another manufacturer in India to increase its supply. What are the reasons for the expansion? Will the iPhone 14 price drop in the country? Let’s try to understand.

Apple’s expansion plans in India:

As the trade war between Washington and Beijing intensifies, Apple is looking for alternative production centers. The world’s largest iPhone manufacturing facility in Xingzhou was recently shut down following China’s zero-covid policy. This puts the Cupertino giant on the back foot.

Apple now sees India as a good alternative to China for iPhone production. Therefore, Apple plans to move one-fourth of iPhone production to India by the end of 2025. According to JPMorgan analysts, Apple may move five percent of iPhone 14 production to India by the end of 2022.

Pegatron has established its manufacturing facility in Tamil Nadu and employs more than 7,000 employees so far. Apart from this, India’s Tata Group is said to be in talks with Apple’s Taiwanese supplier Wistron to start iPhone assembly in India. We expect that the relationship between Apple and India will strengthen from here on and discourage China.

iPhone 14 price drop in India?

Although Pegatron has started assembling the iPhone 14 in India, most of the parts are manufactured in China and then imported into India. These parts attract import duty in India. What’s more, with the production constraints Apple is facing, the iPhone 14 prices are unlikely to drop anytime soon.

However, with new suppliers emerging in the country and Apple’s old partners Foxconn and Wistron in their expansion phase in India, the company may witness an increase in shipments. This is expected to increase India’s international cargo by three percent. IDC expects Apple’s India shipments to cross six million units in 2023, with 4.8 million units in 2022.