Apple, the renowned tech giant, is strategically shifting its iPhone production from China to India in a bid to reduce its reliance on China as the sole source for iPhones. Excitingly, Apple is planning to further boost its manufacturing operations in India.
As per reports from BQ Prime, a reliable source cited by Apple Insider, an unnamed government official has revealed that Apple intends to expand its production in India by over five times, aiming for an impressive $40 billion investment in the next four to five years. Previously, in the fiscal year, Apple had already surpassed the $7 billion production milestone.
It is worth highlighting that the primary focus of this expanded production will continue to be iPhones. However, there are rumors indicating that Apple might extend its production to include AirPods in India. Nevertheless, there are currently no plans to manufacture MacBooks and iPads in the country.
Discussing Apple’s plans, the official stated, “They don’t have any plans to participate in IT hardware PLI. They may come at a later stage, but as of now, their focus is to scale up existing production levels.”
While India’s contribution of $7 billion to iPhone production in the last fiscal year is significant, it is overshadowed by the global iPhone sales figure, which reached an impressive $191 billion for the year ending September 2022. Apple has now emerged as the largest mobile phone exporter from India. Notably, the iPhone 15 series achieved a remarkable 100% growth in sales compared to the iPhone 14 on its launch day. Additionally, the company has ensured the availability of “made-in-India” iPhones on the same day as their global release.
Experts anticipate that by 2025, global iPhone sales originating from India could exceed the current 3.6% and reach over 5%, with a long-term target of achieving 25% of global production within the country.
It is important to note that Apple’s decision to diversify its manufacturing locations stems from the potential imposition of import taxes on Chinese-made devices by the United States, as witnessed a few years ago. Therefore, Apple aims to be well-prepared and secure its supply chain should any US-China issues arise.
Apple’s commitment to expanding its production in India highlights the company’s dedication to establishing a strong foothold in the Indian market while also reducing its dependence on a single manufacturing hub. This strategic move not only allows Apple to diversify its operations but also positions India as a central player in global iPhone production.
