Apple triples its iPhone production in India
2023-04-15
After accelerating its move beyond China, Apple is assembling iPhones valuing more than $7 billion in India last fiscal year, tripling its production. The company now makes almost 7% of its iPhones in India through expanding partners from Foxconn Technology Group to Pegatron Corp. This is a significant leap for India, which accounted for an estimated 1% of the world’s iPhones in 2021.
Apple exported $5 billion worth of iPhones in the year ended March 2023, almost four times more than the previous period. It is also speculated that Apple may simultaneously manufacture its next iPhone models in India and China, starting in fall 2023. If the aggressive expansion of Apple's suppliers persists, the company could assemble a quarter of all its iPhones in India by 2025.
Prior to this, Apple had already acknowledged the necessity of diversifying its supply chain. Consequently, the company lobbied for incentives in India and urged suppliers Foxconn, Wistron Corp., and Pegatron to increase their local production. These suppliers, collectively employing around 60,000 workers in India, manufacture a range of iPhone models, from the iPhone 11 to the latest iPhone 14.
The challenges faced by Apple last year in Foxconn's main "iPhone City" complex in Zhengzhou exposed the vulnerabilities in the company's supply chain, prompting Apple to explore other avenues. Concurrently, India’s PM has been offering incentives to encourage local manufacturing.
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