In a significant shift in its global manufacturing strategy, Apple is reportedly planning to move a quarter of its iPhone production to India over the next two to three years. This information, detailed in a Wall Street Journal report, indicates a substantial increase in the company's reliance on Indian manufacturing capabilities. The change will result in over 50 million iPhones being produced annually in India.
While China will continue to be the primary production hub for iPhones, this move by Apple appears to be a strategic response to the ongoing tensions between the US and China. The production of iPhones in India was initially far behind that of China. However, the gap began to close with the iPhone 14, which saw its manufacturing in India start concurrently with China, marking a significant step for Apple in diversifying its production base.
Apple's efforts to ramp up production in India have faced challenges, particularly due to pushback from local unions against 12-hour shifts. Nevertheless, the company made a notable breakthrough in 2023 when it produced more iPhone 15 units in India than any other model.
Apple to move a quarter of iPhone production to India
This achievement was highlighted by the fact that it was the first time an iPhone model manufactured in India was available on launch day.
Further cementing its commitment to Indian manufacturing, Apple's primary contractor, Foxconn, is in the process of building a new plant in Karnataka state, which is expected to commence operations in April 2024. Additionally, another significant manufacturing facility is reportedly under consideration, which would further bolster Apple's production capacity in India.