Chennai plus one, Apple of the eye

economictimes.indiatimes.com:

Apple's production in India of the iPhone 15, slated for launch next month, sends out a strong message of intent about its desire to diversify out of China. Near-simultaneous release opens up scope for iPhone shipments from India. By closing the delay in production in the two countries, Apple's contract manufacturers are demonstrating capability to retool supply chains.

GoI will also have further proof of execution over PLIs it is offering mobile handset-makers to build a local vendor ecosystem. Most importantly, however, Apple's commitment to India has a demonstration effect on other global manufacturing companies. A large chunk of them have exposure to India through software services.

Success in mobile handset manufacturing opens up bigger possibilities for IT hardware companies. It is great optics as well. Something similar has occurred in the past in the automobile and motorcycle industry.

Suzuki's success with domestic manufacturing drew a host of car- and bike-makers to India. India's automobile industry has acquired fairly robust localisation levels, which the IT hardware industry will try to replicate. GoI has a hierarchy of incentives tied to value addition, with the biggest going into semiconductor chip-making even as computer-makers are being nudged to taper imports as local output slides.

What sets the current round of 'Make in India' — or, at least, 'Assembled in India' — apart is that unlike the automobile industry, which made cars to be sold in the country and similar emerging markets, IT hardware exports are being pitched for advanced economies. The new platform for domestic manufacturing is being set up to deliver a higher level of quality. Few other companies can sell that idea to the world better than