Apple diversifies production base with significant India expansion, accounting to 25% of global iPhone production
In a momentous shift, Apple and its suppliers are aiming to manufacture a staggering 50 million iPhones annually in India within the next two to three years. This ambitious target, revealed on December 8th, 2023, represents a significant diversification of their production base, aiming to capture 25% of global iPhone production.
While China will remain the largest iPhone producer, this move marks a significant step towards diversifying Apple’s manufacturing footprint and leveraging India’s growing production capabilities.
Additionally, plans are in place to produce more than ten million iPhones in India beyond the initial target, further solidifying the country’s role in Apple’s global production strategy. This shift holds substantial economic implications for both India and Apple, potentially creating new jobs and boosting local production capabilities.
Building upon its strategic partnership with key suppliers, particularly Taiwan-based Foxconn Technology Group, Apple is poised to significantly ramp up iPhone production in India, according to Wall Street Journal. This ambitious plan involves constructing new facilities and expanding existing ones, with projections indicating an annual capacity of 50 to 60 million iPhones within the next two to three years. This pivotal move reflects Apple’s commitment to diversifying its production base and leveraging India’s burgeoning manufacturing potential.
The reason Apple is making a major shift by significantly expanding its manufacturing operations in India is to aim and diversify its production base as well as reduce its dependence on China, which has been the primary production hub for iPhones.
Tata Group to build the largest iPhone production house in Tamil Nadu
Marking a significant shift in Apple’s production strategy, Tata Electronics is poised to play a pivotal role in the company’s expansion into India. A new facility, expected to be operational by mid-2025, will be established in Hosur, Tamil Nadu. This strategic move signifies Tata Electronics’ commitment to solidifying its presence in the technology manufacturing sector.
Scaling Up Production: The ambitious plan includes the launch of a new mid-sized iPhone assembly line within the next year and a half. This expansion is projected to contribute significantly to India’s global iPhone production, currently set at 25%.
Beyond Assembly Lines: Further bolstering Apple’s presence in India, plans are underway to open around 100 Apple-exclusive retail stores across the country. This extensive retail network will not only enhance customer experience but also provide convenient access to Apple products for millions of Indian consumers.
Economic Implications: Apple’s shift towards India has substantial economic implications for both parties. The construction of new facilities and the expansion of existing ones are expected to create numerous job opportunities, boosting India’s workforce and contributing to the country’s economic growth.
A Global Manufacturing Hub: Apple’s strategic decision to diversify its production base by investing in India marks a pivotal moment. This move positions India as a major player in the global technology manufacturing landscape, attracting further investments and fostering innovation within the sector.
Apple’s expansion into India is a win-win situation, creating new opportunities for both the tech giant and the Indian economy. The establishment of new facilities, the launch of additional production lines, and the opening of numerous retail stores signify a long-term commitment that will undoubtedly shape the future of technology manufacturing.
