Apple and government sources suggest a potential increase: India set to manufacture a quarter of global iPhone production.
Apple Plans Significant Expansion of iPhone Production in India
In a major strategic shift, Apple is aiming to significantly increase the production of iPhones in India, driven by economic and geopolitical considerations. The tech giant is currently producing around 5-7% of its global iPhone production in India, and there are plans to boost this figure to 25% or more.
Following the unstable post-COVID situation in China, which is the main manufacturing hub for Apple, the company has been exploring options to shift production to other countries. Reports indicate that India could be one of the probable destinations for the iPhone maker.
Recent talks between Apple executives and the Indian Government suggest that a major meeting between the two parties took place to discuss the future of iPhone manufacturing. During this meeting, the government's policies that could benefit Apple were also reportedly under discussion if the company decides to ramp up iPhone production in India.
The visit of Apple CEO Tim Cook to India, as well as his meeting with Prime Minister Narendra Modi, underscores the company's growing interest in the Indian market. Notably, in 2017, Cook had also met Modi to discuss tax concessions for iPhones in India.
While Apple is planning a substantial expansion in India, the Indian government recently announced that companies would require a special license to bring laptops into the country.
Amidst the ongoing global trade tensions, India's relatively stable political environment and cost-effectiveness makes it an attractive option for Apple to diversify its manufacturing base and reduce dependency on China. The Indian government also provides incentives for electronic manufacturing, which can help Apple scale its operations more efficiently.
However, India's limited production capacity and time required to meet U.S. iPhone demand, averaging 20 million units per quarter, poses a challenge. Despite these obstacles, the momentum seems to be shifting in favor of India as a key manufacturing hub for Apple.
The tech industry giant, Apple, is considering a shift in finance, exploring India as a potential destination to boost its iPhone production, aiming for 25% or more in the business of manufacturing. Meanwhile, India's government has recently announced the requirement of a special license for importing laptops, signifying some challenges but also opportunities for technology manufacturers like Apple to expand and diversify their production in the country.
