Why Apple's Shift to India is a Game Changer for the Telecom Sector
Investment in India: A Strategic Move for OEMs
New Delhi: On Tuesday, Union Telecom Minister Jyotiraditya Scindia emphasized that investing in India is now a financially sound decision for original equipment manufacturers (OEMs). He highlighted Apple's recent strategy to produce a significant portion of its iPhones in India as a prime example.
During the Bharat Telecom event, Scindia remarked that the current investment climate in India is driven by economic rationale rather than mere goodwill.
He stated, "Apple has committed to sourcing and manufacturing all its mobile devices in India in the upcoming years," adding that investing in India signifies a choice for affordability, reliability, and originality.
Apple's CEO Tim Cook recently revealed during an earnings call that the company plans to source most iPhones sold in the U.S. from India in the upcoming June quarter, while China will continue to manufacture the majority for other regions amid ongoing tax tariff uncertainties.
Scindia noted that the telecom equipment sector has experienced substantial growth, bolstered by the government's production-linked incentive scheme.
He mentioned that an investment of ₹4,000 crore (approximately half a billion dollars) has led to sales reaching ₹80,000 crore, with ₹16,000 crore in exports and the creation of 25,000 jobs. This indicates a significant expansion of the telecom equipment market in India.
Minister of State for Telecommunications, Chandra Sekhar Pemmasani, pointed out that India has transitioned from being a major importer of mobile phones in 2014 to becoming a significant producer and exporter.
He highlighted that the mobile phone industry has evolved from producing 6 million units and importing 210 million phones in 2014 to an expected production of 330 million units and 50 million exports by 2024.
Pemmasani also noted that currently, 15% of the global iPhone output is produced in India.
According to market research firm IDC, Apple has shipped 232.1 million iPhones worldwide.
Pemmasani added that the semiconductor initiative is positioning India as a global hub for electronics and manufacturing.
He remarked, "The establishment of semiconductor fabrication facilities in India marks a pivotal moment for our technological independence."