- Apple is looking to address demand for its iPhone 14 with higher India production
- The iPhone 14 Pro and Pro Max supply crunch is also being “addressed”, as per Union Minister Rajeev Chandrasekhar
- Reports have claimed unofficial sales channels to be usurping iPhone 14 Pro supplies
Apple is reportedly looking to match its demand for the new generation iPhone 14 models with its India production, while also looking at ways to address a supply shortage of its ‘Pro’ iPhone 14 models, according to Union Minister of State for Information Technology, Rajeev Chandrasekhar. Replying to a tweet underlining the selling of Apple’s iPhone 14 Pro and Pro Max (review) models through unofficial channels for all-cash deals, the Minister stated that the government has taken cognisance of the matter, and has discussed the same with Apple to meet the demand for its iPhones in India.
Where the iPhone 14 stands in India’s consumer demand
It is interesting to note that Apple continues to hold a minor share of the Indian smartphone market. According to industry reports, Apple captured a 4 percent market share among all original equipment manufacturers (OEMs) in the country. The company does not ply its trade in the budget smartphone segments, which contribute to the largest bulk of phone sales in India.
I hv spoken wth Apple n they hv said while iphone14 demand is being met also wth india productn, the iphone14 pro demand has surged n is facing supply constraints which they r addressing— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) October 26, 2022
pvt sales are probably “alternate” supply channels https://t.co/wLxJdxbFi9
Yet, the demand for Apple’s iPhones have steadily increased in India, along with a rise in the country’s average selling price (ASP) of smartphones. A Mint report pegged the present ASP of smartphone to be around Rs 20,000 — at the cusp of the recently concluded first round of festive season sales.
While the iPhone 13, thanks to steep discounts, saw heavy demand, Apple’s smartphones are significantly more expensive than India’s smartphone ASP. For reference, the iPhone 14 starts at Rs 79,900 in India — nearly 4x the ASP of a smartphone in the country.
While Apple affiliated contract manufacturers, including Foxconn, Wistron Corp and Pegatron have all set up factories in India, it now remains to be seen if the production pace will be ramped up to meet increasing market demand. Many of these facilities contribute to Apple’s global supplies, and not just India — as the company seeks to diversify its supply chain beyond China.