Even as Apple's top assembler Foxconn is all set to manufacture iPhone 13 at its Sriperumbudur unit in Tamil Nadu, the second largest Apple contract manufacturer Pegatron does not want to be left behind.
Pegatron, which has a spanking new manufacturing unit in Tamil Nadu, will begin making the iPhone 12 next month, according to a new report.
The Economic Times said Taiwan's Pegatron has set itself a target of producing goods worth more than Rs 8,000 crore in India in the next fiscal year starting April. Pegatron will initially produce the iPhone 12 series, followed by iPhone 13 series, and employ close to 6,000 people.
Pegatron has committed itself to $150 million (Roughly Rs 1100 crore) initial investment in the country,
Apple will save on import tariffs due to local manufacture
Foxconn and Pegatron are expected to help deepen the iPhone maker's presence in the world's second largest smartphone market. As it stands now, close to 70% of India's iPhones are now made locally. Apple just had a record 2021, its best ever in terms of market numbers.
According to the market research firm CMR, Apple shipped 5.4 million iPhones to India in the entire year, and 2.2 million in the festive quarter (Q4) alone. Apple also seems to be finally gearing up for the launch of its retail stores in India. Apple’s recruitment team had revealed that the company will launch 2 stores – each one in Delhi and Mumbai. Though it is not clear yet if the said stores will go live this year.
Pegatron is the latest company to take advantage of Indian government's clutch of incentives for manufacturing in the country. As Apple stands to save on import tariffs due to local production, it can competitively price iPhones in the Indian market, where it occupies the niche pricey upscale segment.
Pegatron's Indian operations may come under more focus as there is a lockdown in Shenzhen, where Pegatron's Chinese plant is located.
Pegatron registered its Indian subsidiary in 2020, and the production work was expected to start late last year, but was delayed to the pandemic.
