In a bold move to diversify its manufacturing footprint, Apple Inc. has significantly ramped up its iPhone production in India, reaching a staggering $14 billion in the last fiscal year. This strategic pivot marks a 100% increase in the company’s output from the region, signaling a concerted effort to reduce its reliance on China amidst escalating geopolitical tensions.
The Cupertino-based tech giant has been assembling iPhones in India for some time, but the recent figures indicate a major shift in its global supply chain strategy. According to sources familiar with the matter, approximately 14% of all iPhones, roughly one in seven, are now manufactured in India.
This development comes as Apple seeks to mitigate risks associated with its heavy dependence on Chinese manufacturing. The ongoing trade frictions between the United States and China, coupled with the latter’s stringent ‘zero-Covid’ policies, have prompted Apple to look for alternative production bases.
India, with its vast workforce and growing tech ecosystem, has emerged as an attractive destination for Apple’s manufacturing needs. The increase in production not only aligns with Apple’s strategy but also resonates with the Indian government’s ‘Make in India’ initiative, which aims to transform the country into a global manufacturing hub.
While this move is expected to bolster India’s position in the global supply chain, it does not necessarily translate to lower prices for Indian consumers. The iPhones assembled in India will still carry a premium price tag due to high import duties on components and other taxes.
Nevertheless, Apple’s decision to double down on iPhone production in India is a significant endorsement of the country’s manufacturing capabilities. It also reflects the tech giant’s agility in adapting to the complex geopolitical landscape that impacts global trade and commerce.
For Apple, this is more than just a shift in production; it’s a strategic realignment of its global operations, ensuring resilience and sustainability in a rapidly changing world. As the company continues to navigate the challenges of international trade, its increased presence in India stands as a testament to its commitment to innovation and growth in a diverse and dynamic market.
