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Tag: iPhone manufacture

  • iPhone Maker Pegatron to Set Up Chennai Plant for 5G Equipment, Targets Local and Export Markets

    The massive Taiwanese electronics manufacturer Pegatron is constructing a new plant in Chennai with the goal of manufacturing 5G small cells for the expanding private networks industry in India. The plant will also be able to meet demand from other parts of the world, including Europe, Southeast Asia, and possibly North America, in a Moneycontrol interview.

    The new plant represents Pegatron India’s next stage of investment in the country’s telecom manufacturing ecosystem, according to Jayant Moghe, AVP and Country Manager. According to him, the company is building its second Pegatron plant in Chennai to produce 5G tiny cells for the private 5G industry, which it anticipates will be a developing sector in the years to come, he told Moneycontrol.

    Over the past four and a half years, Pegatron, one of the biggest electronics manufacturing services (EMS) companies in the world with $35–40 billion in global revenues, has been gradually expanding its telecom manufacturing footprint. According to Moghe, the Chennai facility would take advantage of India’s growing status as a hub for production and design to service both domestic and international clients.

    Pegatron and Apple Bond in India

    One of Apple’s main manufacturing partners, Pegatron, had been putting together iPhones at its plant in Chennai. Tata Electronics, however, has already taken over that factory and will keep making iPhones there. With Tata being the first Indian business to produce iPhones and taking over Pegatron’s operations, the decision represents a significant change in Apple’s India strategy. The forthcoming Chennai unit will first concentrate on 5G tiny cells, which are essential facilitators of private 5G networks utilised by businesses in automation, transportation, mining, and manufacturing.

    Moghe did point out that Pegatron offers more than just radios as part of its telecom business. According to him, the company manufactures full 5G devices, including cameras, CPEs, Wi-Fi and GPON end-user devices, and AI modules. He also mentioned that the company is creating automation systems and cutting-edge AI hardware for use in smart factories.

    He explained that Pegatron’s manufacturing vision combines hardware, networking, and artificial intelligence (AI), all of which the business is concurrently investing in internationally. In Batam, Indonesia, Pegatron already operates a fully connected private 5G-enabled factory that produces automation systems and AI-powered gadgets. The business intends to duplicate this model in India.

    Pegatron Going Vocal for the Local

    Prior to moving production to India, Moghe acknowledged that Pegatron currently designs its gadgets in Taiwan and handles new product introduction (NPI) procedures there. However, as India’s component ecosystem develops, the company anticipates increasing local sourcing and value addition over time. According to Moghe, the business would give local sourcing careful consideration in the future. The company will make the best localisation choices as the telecom component ecosystem grows.

    Quick Shots

    •Pegatron to set up a new plant in Chennai to
    manufacture 5G small cells for private networks in India.

    •Plant will also serve export markets including
    Europe, Southeast Asia, and potentially North America.

    •Second Pegatron facility in Chennai, focusing on
    the growing private 5G sector.

    •Pegatron is one of the largest EMS companies
    globally with $35–40 billion in revenue.

  • Apple Leases INR 1,010 Crore Office Space in Bengaluru for 10 Years – Expands India Operations

    According to various media reports, the smartphone giant Apple has rented approximately 2.7 lakh square feet of office space in Bengaluru for ten years, with a total outlay of approximately INR 1,010 crore for the duration, which includes rent, parking, and maintenance.

    The iPhone manufacturer will pay a monthly rent of INR 6.31 crore, or INR 235 per square foot, to occupy the fifth through thirteenth floors of Embassy Zenith on Sankey Road, Vasanth Nagar, in Bengaluru.

    A security deposit of INR 31.57 crore has been made by the corporation, with a 4.5% yearly rent increase. The lease was registered in July and started on April 3, 2025. According to the paperwork, Apple has paid stamp duty of INR 1.5 crore.

    Apple Retail Expansion in India

    The decision, according to industry executives, is a part of Apple’s larger development in India, where it is increasing its retail presence and growing its operations and technical teams.

    After opening stores in Delhi and Mumbai, Apple is getting ready to open its third location in India at the Phoenix Mall of Asia in the city’s north of Bengaluru.

    For a 10-year lease with an annual price of nearly INR 2.09 crore, the company has rented roughly 8,000 square feet of premises from Sparkle One Mall Developers. Rent payments started in August 2025 after the lease was recorded in November 2024.

    Apple’s R&D and Hiring in Bengaluru

    With Bengaluru evolving as a major R&D hub worldwide, Apple Operations India supports the larger Apple ecosystem while spearheading initiatives in engineering, hardware design, failure analysis, research, and testing.

    For positions like RF System Integration Engineer, Software Development Engineer in Test, Machine Learning Engineer, and Engineering Program Manager, the organisation is still actively hiring. A cutting-edge building in Prestige Minsk Square serves as the focal point of Apple’s engineering centre in the city. It has specialised labs and collaborative workspaces and is built to Leadership in Energy and Environmental Design (LEED) sustainability standards.

    In addition to infrastructure, Apple has made investments in fostering local talent through programmes like the App Accelerator, which offers iOS developers specialised mentoring. Teams from Bengaluru contribute to several Apple businesses, including operations, IS&T, software, hardware, services, and customer support.

    Airtel–Apple Partnership: Free Apple Music

    It looks like Bharti Airtel is adding more bundled digital services for its Indian consumers. According to reports, the telecom operator has extended its collaboration with Apple, which was previously restricted to postpaid and broadband consumers, by providing free access to Apple Music for its prepaid customers.

    The action was taken only a few weeks after Airtel gained notoriety for giving its customers free access to the premium artificial intelligence application Perplexity AI Pro. Telecom Talk was the first to notice that some Airtel prepaid users have started to see the Apple Music offer within the Airtel Thanks app. Users can take advantage of the streaming service for free for a maximum of six months, according to the banner.

    Quick
    Shots

    •Apple has leased 2.7 lakh sq. ft.
    office space at Embassy Zenith, Bengaluru, for 10 years worth INR 1,010
    crore.

    •Monthly rent of INR 6.31 crore (INR
    235/sq. ft.) with a 4.5% annual hike; security deposit of INR 31.57 crore.

    •Third Apple Store coming up at
    Phoenix Mall of Asia, North Bengaluru, after Delhi & Mumbai.

    •Bengaluru acts as a global R&D
    base for Apple, with teams working on hardware design, testing, ML, software,
    and operations.

  • By FY27, Apple Aims to Produce 32% of iPhones and 26% of Value in India

    By 2026–2027, a year after the end of the five-year production-linked incentive (PLI) programme for handheld devices, Apple Inc. and its suppliers hope to assemble 32% of the iPhone’s global production volume and 26% of its value in India.

    If global iPhone sales stay at 2023-24 (FY24) levels, this may amount to a production value of more than $34 billion. According to media reports, the figures are based on conversations on product assembly in India between Apple Inc. and its suppliers as well as the federal and state governments. 

    India to Produce 17-18% World’s iPhone

    Apple‘s vendors project a freight-on-board (FOB) production value of $9 billion for the first half of 2024–2025 (FY25). According to projections, India would produce 17–18% of the world’s iPhones by the end of the fiscal year and 14% of their total worth.

    Only 12–14% of the world’s iPhone production volume moved to India in FY24, although the value accounted for more than 10%. The corporation is anticipated to conclude FY25 with a production value of $18 billion (market value around $27 billion), according to vendor planning.

    The Marketing Dynamics of iPhone

    Sales, distribution costs, and dealer margins make up the market value of iPhones, whereas FOB denotes the value at the time of shipment. India’s iPhone production was valued at $14 billion in FY24. Given that iPhones accounted for 51% of Apple Inc.’s $391 billion global revenue in the fiscal year that ended on September 30, 2024, the country stands to gain greatly from the move of iPhone production from China.

    With $201 billion in global sales, the iPhone is 21% more than the Tata Group‘s $165 billion overall revenue and 67% higher than Reliance Industries’ $119 billion revenue for FY24. Worldwide, Apple’s iPhone sales are on par with Microsoft’s ($211 billion) and surpass those of several companies, including Chevron ($200 billion), Honda Motor ($141 billion), Ford Motor ($176 billion), and Nestlé ($103 billion). Therefore, any increase in manufacturing capacity for India would result in significant additional income for the nation. 

    India is Becoming a Centre Stage for iPhone Production

    The significance of this change is demonstrated by the fact that JP Morgan earlier predicted that by 2026–2027, 25–30% of iPhone manufacture would relocate to India. By the fifth year of the PLI scheme, Apple had originally promised to move just 10% of its production to India. But in the scheme’s third year, it has already surpassed that amount. If US President-elect Donald Trump raises taxes on mobile devices (which are presently 15%), especially with regard to China, with whom the US is engaged in a trade war, the scenario could shift even further.

    India, Vietnam, and other Southeast Asian nations may benefit from the punitive tariffs that Trump has suggested may reach 60%. Of course, if the government does not discover more measures to reduce tariff rates on components used in mobile devices, ease labour regulations, and improve logistics, Apple’s vendor targets may alter. This is because China and Vietnam are more affordable than India. Furthermore, the difficulty of reaching value-addition goals of 35–40% by the PLI scheme’s conclusion may make matters more difficult.

    Apple Establishes First Indian R&D Subsidiary
    Apple Inc. establishes its first R&D subsidiary in India, marking a key investment in innovation and technology development within the country.
    StartupTalkyNitin Konde