For years, Apple has been striving to diversify its hardware production away from China. Recently, it achieved a significant milestone in India. While China remains crucial, India’s role in manufacturing is steadily increasing. The efforts to relocate hardware production outside China are gradually bearing fruit for Apple. With substantial investments in India, Apple has transformed the country into one of its primary iPhone producers.
The Indian Factor in iPhone Production
According to a report by Bloomberg, during the fiscal year spanning from October 2022 to September 2023, Apple outsourced $14 billion worth of iPhone production to India. This marks a twofold increase from the previous year. This year, India accounted for 14% of the total iPhone models in the market. This indicates that one out of every six iPhones in the market is manufactured in India. Despite shifting production to India, Apple continues to collaborate with its trusted partners.
Foxconn handles 67% of production in India, while Pegatron holds a 17% share in this domain. The Tata Group acquired Wistron facilities, which produce the remainder. Apple’s investments in the country have generated around 150,000 direct employment opportunities.
India’s Role in Apple’s Global Strategy
Transitioning a significant portion of iPhone production to India not only diversifies Apple’s manufacturing base but also aligns with its broader global strategy. India’s emergence as a prominent manufacturing hub reflects Apple’s commitment to geographic diversification and mitigating risks associated with over-reliance on a single country. While China continues to dominate global manufacturing, India’s expanding role underscores a strategic shift in Apple’s supply chain. Moreover, India’s large consumer base presents immense growth potential for Apple’s products.
Wrapping Up
The increasing share of iPhone production in India signifies a significant milestone in Apple’s global strategy. By diversifying its manufacturing base, Apple aims to enhance resilience and tap into new markets. India’s rise as a manufacturing powerhouse highlights the country’s growing importance in the global tech landscape. As Apple keeps investing in India, the country’s position in the company’s supply chain is set to strengthen further, influencing the future of iPhone production.
