Apple is set to consider the prospect of commencing the assembly of iPhone Pro models within the borders of India. The transformation of India from a mere smartphone importer into a prominent nucleus for smartphone assembly has been notable over the past years. While Samsung has effectively produced its latest premier devices like the Galaxy S23 Ultra, along with the newly revealed Galaxy Z Fold5 and Galaxy Z Flip5, directly within India, its contender, Apple, is progressively elevating its assembly endeavors within the country.
For the first time since its inception of assembly operations in India, Apple is diligently working towards undertaking the assembly of a forthcoming iPhone model within the nation's confines, even before its official global debut. However, it's noteworthy that Apple's initial emphasis lies on assembling the fundamental variant—the iPhone 15—rather than directing its attention to its Pro models. Here, we delve deeper into the rationales that advocate for Apple's expansion of assembly operations to encompass the iPhone Pro models within India.
Mitigating Revenue Vulnerability & Enhancing Supply Chain Resilience:
With the launch of the iPhone 14 Pro and 14 Pro Max back in September of the previous year, an overwhelming upsurge in demand was witnessed for these specific models. Regrettably, the widespread repercussions of COVID-19 related restrictions and complications in the workforce at the manufacturing plant situated in China, where these smartphones are conventionally produced, left a profound impact. Apple encountered severe scarcities in its inventory, subsequently translating to substantial financial setbacks for the technology behemoth.
On the 6th of November, 2022, Apple formally issued a statement acknowledging that the primary assembly facility for iPhone 14 Pro and iPhone 14 Pro Max, positioned in Zhengzhou, China, had been considerably hampered by COVID-19 restrictions, resulting in a noteworthy decline in its operational capacity.
Danish Faruqui, the CEO of Fab Economics, an adept consultancy firm specializing in the semiconductor ecosystem, explains, "Apple had meticulously orchestrated all aspects for its innovative flagship models, yet owing to predicaments at the assembly site in China, countless units of Apple's distinguished iPhone 14 Pro and Pro Max couldn't be furnished during Q42022 (October-December). This unfortunate circumstance culminated in a staggering loss exceeding $1 billion for each million units of iPhone 14 Pro or Pro Max that couldn't be dispatched due to the scarcity."
To avoid a replication of last year's missteps, Apple would be judicious to contemplate broadening its assembly operations for the Pro models beyond the existing precincts in China. In this context, India emerges as a compelling choice for the assembly of iPhone Pro and Pro Max models. This proposition is further bolstered by the fact that the operational and capital expenditure cost structures for assembly operations in India are on par with existing setups, as expounded by Danish Faruqui.
Apple's Forthcoming iPhone 15 Series Poised to Introduce Lightning-Fast 35W Charging
