In a strategic move to diversify its global supply chain, Apple Inc has significantly increased its production of iPhones in India, according to a recent report by Bloomberg News. The tech giant has amassed a staggering $14 billion worth of iPhones manufactured in India during the fiscal year 2024.
Reports indicate that Apple now produces approximately 14 percent of its iconic devices in India, marking a notable milestone in its manufacturing strategy. This translates to roughly 1 in 7 iPhones being made in the country, a significant shift in production dynamics.
Foxconn, a key manufacturing partner for Apple, reportedly contributed nearly 67 percent of the India-made iPhones, highlighting its substantial role in the production process. Meanwhile, Pegatron Corp, another prominent player in Apple’s supply chain, manufactured approximately 17 percent of the India-made iPhones, further emphasizing the collaborative effort behind Apple’s manufacturing endeavors.
The remaining portion of India-made iPhones was attributed to Wistron Corp’s plant in the southern Indian state of Karnataka. Notably, this facility came under the management of the Tata Group last year, underscoring the evolving landscape of Apple’s manufacturing partnerships in India.
Despite the significant progress in ramping up production, Apple has yet to comment on these developments, indicating a deliberate approach to media inquiries.
The expansion of iPhone production in India aligns with Apple’s broader strategy of reducing dependency on China amidst escalating geopolitical tensions. While China remains the primary hub for iPhone manufacturing globally, Apple’s efforts to diversify its production locations reflect a proactive approach to mitigate potential risks associated with geopolitical uncertainties.
In another notable development, Reuters reported on Monday that Pegatron is engaged in advanced discussions to transfer control of its sole iPhone manufacturing facility, located near Chennai in the southern state of Tamil Nadu, to the Tata Group. This move signifies the Tata Group’s increasing involvement in Apple’s manufacturing ecosystem in India.
Moreover, the Indian conglomerate is actively pursuing the establishment of a new manufacturing plant in Hosur, Tamil Nadu, with Pegatron expected to emerge as its joint venture partner. This collaborative effort underscores the growing significance of India as a pivotal manufacturing hub for Apple and its supply chain partners.
As Apple continues to navigate the complex dynamics of global supply chain management, its strategic investments in India reflect a long-term vision aimed at enhancing operational resilience and geographical diversification. With India emerging as a key player in Apple’s manufacturing ecosystem, the tech giant is poised to further consolidate its presence in the region while adapting to evolving market dynamics and geopolitical realities.
