India iPhone Production
Apple Inc. has significantly boosted its production of iPhones in India, assembling over $7 billion worth of iPhones in the country during the last fiscal year, according to sources familiar with the matter. Apple has been exploring ways to reduce its reliance on China as tensions between the US and China continue to escalate.
To diversify its supply chain, Apple has expanded its partners in India, including Foxconn Technology Group and Pegatron Corp., both of which have added assembly lines at a rapid pace over the past year. This expansion has helped Apple make almost 7% of its iPhones in India, and it is expected to continue to increase production in the country.
Of the total production in India, Apple has exported $5 billion worth of iPhones in the year ending March 2023, nearly four times as much as the previous period. The company is also reportedly planning to manufacture the next iPhones in India concurrently with China in the fall of 2023, which would be the first time iPhone assembly begins concurrently in the two countries. If the aggressive expansion of its suppliers in India continues, Apple could potentially assemble a quarter of all its iPhones in India by 2025.
The move to increase production in India is seen as a strategic decision by Apple to diversify its supply chain and reduce its dependence on China. It comes at a time when the Chinese economy is facing challenges due to years of punishing Covid Zero restrictions, and Apple is looking for alternative locations to ensure a smooth supply chain.
India has been actively working to boost local manufacturing and has offered incentives to companies like Apple to invest in the country. Apple’s increased production in India has positioned the country as a major manufacturing hub and an alternative location to China. This economic triumph for India could have implications for how other US brands plan their manufacturing strategies in the future.
Apple is also focusing on expanding its retail presence in India. The company is set to open its first two retail stores in Mumbai and New Delhi, underscoring the rising importance of the domestic market. Apple has also sought changes in India’s labor laws to further expand its local production and create mega factories.
Apple’s decision to boost production of iPhones in India is a strategic move to diversify its supply chain and reduce dependence on China. With significant investments in local manufacturing, India has become a key manufacturing hub for Apple, and this economic triumph could have implications for other global brands. As Apple continues to expand its presence in India, it is likely to further strengthen its position in the world’s fastest-growing smartphone market and capitalize on the country’s potential for future growth.
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