Moody’s lauds Apple India’s manufacturing capabilities

BUSINESS DESK: The manufacturing of iPhone 14 in India within weeks of the global launch demonstrates the maturity of Apple’s manufacturing capabilities in the country, according to Moody’s Investors Service.

Increasing volumes of locally-manufactured iPhones will also accelerate Apple’s expansion strategy in India, Raj Joshi, Senior Vice President, Corporate Finance Group, Moody’s said.

The Indian smartphone market’s large size and strong growth prospects as the country unveils its 5G network “make it an attractive long-term market for Apple”, according to a note by Moody’s.

“Apple’s plan to manufacture iPhone 14 products in India is credit positive because it will diversify its manufacturing base that is highly concentrated in China,” Joshi said.

Moody’s in its commentary on Apple’s plans to manufacture iPhone 14 products in India further observed that Apple has produced iPhones in India since 2017 “…but the manufacturing of iPhone 14 within weeks of their global launch demonstrates the maturity of the company’s manufacturing capabilities in India that we expect to ramp up quickly.”

Moody’s said Apple had less than five per cent unit share of the smartphone market in India, the second-largest smartphone market by unit volumes, and iPhone sales in India nearly doubled in June 2022 quarter over prior year.

The commentary assumes significance given that Apple has begun manufacturing its marquee new iPhone 14 in India as the global tech giant taps into production prowess outside of China.

This time around, the production in the world’s second-biggest smartphone market commenced within weeks of the September 7 unveiling of the device.

“We are excited to be manufacturing iPhone 14 in India…The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities,” Apple had said in a statement earlier this week.

Cupertino, California-headquartered Apple started manufacturing iPhones in India in 2017 with iPhone SE.

Today, Apple manufactures some of its most advanced iPhones, including iPhone SE, iPhone 12, iPhone 13 and now, iPhone 14 in the country.

The Made-in-India iPhone 14 will begin to reach local customers in next few days.

Phones manufactured in India will be both for the Indian market and exports. The iPhone 14 will be shipped from Foxconn’s Sriperumbudur facility on the outskirts of Chennai.

Foxconn is the world’s largest contract electronics manufacturer and major iPhone assembler.

Apple, which has been making most of its iPhones in China, could make one out of four iPhones in India by 2025, JP Morgan analysts had said in a note last week.

iPhone devices in the past were assembled in India about six to nine months after production started in Chinese factories.

This time the duration has been cut short to just a couple of weeks. (PTI)