Summary
All four variants of the iPhone 17 will be manufactured in India, with production slated to increase at Tata Electronics’ facilities in Hosur and Tamil Nadu, along with Foxconn’s locations near the Bengaluru airport.
Apple is intensifying its iPhone production within India to diversify its manufacturing supply chain, thereby reducing its reliance on China.
The tech giant intends to move the complete assembly of iPhones destined for the US market to India by the following year.
Apple’s Strategic Initiative to Diversify Manufacturing
The Cupertino-based tech titan, Apple, is reportedly gearing up to enhance production capabilities for the iPhone 17 across its five operational factories in India, including two recent additions.
A report from Bloomberg suggests that Apple is augmenting its iPhone output in India to establish a more diverse manufacturing supply chain and diminish its dependence on Chinese production.
According to the same report, all four models of the iPhone 17 will be produced in India, with an escalation in manufacturing at Tata Electronics’ facilities in Hosur and Tamil Nadu, as well as Foxconn’s operations near Bengaluru airport.
Apple’s Agenda to Diversify Global Manufacturing
In late April this year, Apple made a decisive move to significantly reduce its iPhone manufacturing presence in China. Furthermore, the company plans to transition the entire assembly of iPhones sold in the U.S. to India by 2026.
This strategic decision stemmed from China’s increasing assertiveness towards the U.S., including heightened tariffs on U.S. exports earlier this year. During the trade conflict, the U.S. implemented tariffs reaching 145% on China, prompting reciprocal tariffs of 125% from the latter, which catalyzed Apple’s shift to safeguard its supply chain from geopolitical turbulence.
Apple initiated the manufacturing of the iPhone 15 in India last year, achieving an annual output of between 30 million to 40 million units. Prior to this shift, 25% of Apple’s manufacturing was already occurring in India through its contract manufacturers, including Tata Electronics, Foxconn, and Pegatron.
While the company has diligently sought to relocate its manufacturing outside of China, the transition has not been without challenges. For instance, in April, Chinese authorities obstructed one of Apple’s suppliers from exporting essential machinery to India, which was critical for initiating trial production of the iPhone 17.
A few months later, Foxconn recalled 300 engineers from China who were key personnel anticipated to contribute to the testing of the new iPhone 17 in India.
Apple’s Flourishing Prospects in India
In addition to bolstering its manufacturing operations in the region, Apple CEO Tim Cook highlighted during the April-June earnings call that the company has experienced double-digit growth across its product sales in India, including iPhones, Macs, and services.
Moreover, Apple is poised to expand its retail presence in the country by inaugurating four new stores in Bengaluru, Mumbai, Pune, and Noida later this year.
Apple reported a 13.4% surge in revenue from iPhone sales globally, reaching $44.6 billion in the June quarter, predominantly propelled by the iPhone 16 lineup. Overall, the company’s revenue for that quarter increased by 10% to $94 billion.
Source link: Inc42.com.
