Tech Giant Apple Shifts Focus to India, Aims to Reduce Dependence on Chinese Manufacturing
In a significant move to bolster its manufacturing capabilities in India, tech giant Apple is reportedly gearing up to initiate production of the iPhone 17 base model in the country. This step is part of Apple’s broader strategy to diversify its supply chain and reduce reliance on China, amid ongoing geopolitical tensions.
Initial Manufacturing Plans Underway
According to a report from The Information, Apple is collaborating with an Indian factory to facilitate this transition. The Indian manufacturing unit will be tasked with converting the iPhone 17 prototype into a mass-produced model, marking a historic first for an Indian facility in undertaking such an assignment.
The production of the standard iPhone 17 is expected to commence in the latter half of 2025, indicating a long-term commitment to establishing a robust manufacturing presence in India. The upcoming iPhone is anticipated to feature significant upgrades in both display technology and processing power.
Recent Developments in Indian Manufacturing
Earlier this year, Apple began producing its latest iPhone 16 range in India, signaling its growing footprint in the country. Currently, the company employs around 3,000 workers in India but plans to ramp up its workforce significantly. Reports suggest that Apple’s ecosystem in India could potentially create 600,000 jobs by the end of the current fiscal year (FY25).
This expansion aligns with the Indian government’s push to enhance local manufacturing through production-linked incentives (PLIs) and other support measures, making India an attractive destination for global tech companies.
Manufacturing Partnerships and Economic Impact
To execute its manufacturing strategy, Apple has partnered with major suppliers including Foxconn, Pegatron, and Tata-owned Wistron. According to the Economic Survey 2023-24, India contributed approximately 14% to Apple’s overall production in FY24, emerging as a crucial hub for the company’s global exports.
In FY24, contract manufacturers Foxconn, Wistron, and Pegatron collectively produced iPhones valued at INR 1.2 lakh crore in India, with INR 85,000 crore worth of devices being exported. This not only demonstrates the scale of production but also highlights India’s growing importance in Apple’s supply chain.
Retail Expansion in India
In addition to expanding its manufacturing capabilities, Apple has announced plans to open four new retail stores across major Indian cities, including Bengaluru, Pune, Delhi NCR, and Mumbai. This move is indicative of Apple’s commitment to enhancing its market presence in India and engaging more directly with Indian consumers.
Conclusion: A Strategic Shift Towards India
Apple’s decision to expand its manufacturing operations in India reflects a strategic pivot to diversify its supply chain away from China. With the anticipated production of the iPhone 17 and a commitment to creating a significant number of jobs, Apple is not only reinforcing its operational capabilities but also contributing to India’s economic growth. As the tech giant continues to strengthen its ties with the Indian market, it sets the stage for a new chapter in its global production strategy, enhancing India’s role in the tech landscape.
